India could emerge as the largest hub for sourcing of apparel and knitwear garments in the next five years, according to Indian apparel industry officials.

"With China showing more interest in engineering and IT sector and Bangladesh being looked at as a non-compliant country, global players, both in traditional and non-traditional markets are eyeing India's potential for outsourcing with great interest,” commented A Shaktivel, Chairman, Apparel Export Promotion Council (AEPC).

Increased orders

India has been at a cost disadvantage compared to Bangladesh, Vietnam and others, but due to non-compliance issues in Bangladesh the situation is changing now, resulting in increased orders to India.

India, with its fairly high level of compliant garment export factories, has become an attractive sourcing destination and apparel exports in the first five months of this fiscal has shown a 14% increase in Dollar terms.

Positive outlook

Shaktivel believes that apparel exports can cross the targeted 17 billion USD export this fiscal year, because of this growing trend.

He said AEPC delegations would visit Israel, Japan and Australia to strike deals with major buyers there. There were no problems with regards to the availability of raw materials, like cotton yarn, though fluctuation in yarn price was a cause of concern, Shaktivel reports.

“Overall it would be a good period for the apparel sector from now,” he said.

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