Friday November 25, 2022
Textile clusters receiving higher enquiries amid Bangladesh crisis; order conversion by early 2025: AEPC
The ongoing political and economic challenges in Bangladesh have led to increased global inquiries for Indian apparel exporters, particularly from major brands such as Primark, Tesco, Decathlon, JCPenney, GAP, and Walmart. These inquiries are expected to convert into orders for shipments by early 2025.
Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), emphasized that this situation presents a significant opportunity for India's textile industry. He noted that capturing just 10% of Bangladesh's global apparel exports could directly create 500,000 jobs and indirectly generate an additional 1 million jobs in the Indian apparel sector. To capitalize on this opportunity, Thakur highlighted the need for India to urgently address issues related to capacity augmentation and skill development.
To effectively seize this opportunity, the AEPC has called for several supportive measures, including:
- Introduction of PLI 2.0 Scheme: Implementing a Production Linked Incentive scheme for all types of garments, irrespective of fiber, with a reduced investment threshold.
- Revival of Technology Upgradation Scheme: Reinstating this scheme to benefit the micro-industry segment.
- Continuation of Interest Equalization Scheme: Maintaining this scheme for exporters to ensure competitive financing.
- Flexibilities in Fabric and Machinery Imports: Allowing more concessions to enhance production capabilities in the textile sector.
These measures aim to enhance India's production capacity, shorten production cycle times, and maintain export competitiveness.
The AEPC also anticipates that events like Bharat Tex 2025, a mega textile event bringing together global brands, retail chains, and potential investors, will further strengthen India's position in the global textile ecosystem.
Bangladesh Crisis Impacts Global Apparel Supply Chains
