Indian Apparel Industry- an Overview

The apparel industry is one of India's largest foreign exchange earners, accounting for nearly 16% of the country's total exports. The 1996 Indian textile exports approximately amounted to Rs.35,000 crores of which apparel occupied over Rs14,000 crores.

It has been estimated that India has approximately 30,000 readymade garment manufacturing units and around three million people are working in the industry . Today not only is the garment export business growing, enthusiasm in the minds of the foreign buyers is also at a high.Today many leading fashion labels are being associated with Indian products. India is increasingly being looked upon as a major supplier of high quality fashion apparels and Indian apparels have come to be appreciated in major markets internationally. The credit for this goes to our exporter commmunity.

Consistant efforts towards extensive market coverage, improving technical capabilities and putting together an attractive and wide merchandise line has paid rich dividends. But till today, our clothing industry is dominated by sub-contractors and consists mainly of small units of 50 to 60 machines. India's supply base is medium quality, relatively high fashion, but small volume business.

Recent recession in Europe and the South Asian currency crisis have also contributed their own bits to the decimating Indian exports. Though these are expected to fizzle out soon, there is no reason for complacency on the part of Indian exporters or of the garment industry. The industry will be soon faced with open competition shorn of quotas or tariffs.

Thus the need of the hour is to enlarge both manufacturing as well as the marketing base. Inculcation of a spirit of innovation by way of research and development and tapping new markets especially in South Africa, Central Africa, CIS, East European countries, Latin America and Australia is also mandatory for export growth.