Garment export has been the fastest growing industry in the country for more than two decades and has the distinction of being the highest net forex earner for the last several years. Going through a slowdown, the industry's growth rate, which veered around 25 % up to the '80s, slipped into the negative in 1997-98.

"The situation, at present, is a cumulative effect of twofactors. One, the recession in Europe has a strong reflection on consumer spending over there. As a consequence, import of fashion-oriented garments which has been the Indian industry's forte has suffered a lot. Two, the downturn of economies of South-East Asian countries and even Japan has made imports from these countries by European and US buyers more attractive pricewise," points out N K Chawla, representative of Apparel Exporters and Manufacturers Association (AEMA) and on the executive committee of AEPC.

S Mazumdar, executive secretary, AEMA, agrees with Chawla: "The scenario in the international market is not very good. We are not getting good price for our stuff. Reason: our major importers have the option of buying cheap products."

Though the demand in the US has not suffered in terms of volume , Europe is not picking up which has aggravated the problem, says Mazumdar. "Americans don't have much inclination for fashion garments. Europeans are totally different in this regard -- they pay specialattention towards new trends and fashion. But, the major problem is that there is no growth."

H K L Magu, president, Garment Exporters Association, too stresses that the situation in the European market has affected the industry more than anything else. "Business is weak because it is not picking up in Europe. We can't sell at the price the Americans want. Since we are unable to quote competitive rates, we are not able to book much."

To add to the problems of the Indian exporters, a new trend is emerging in the international market. Big buyers from the US and other countries don't want to come to India, says Magu. "They want us to come to Hong Kong or Singapore with our stuff. We have no choice but to comply with their demand as we are at the receiving end. It is not possible to show the complete range to the buyers at these places. They also demand lower prices."

Problems may be too many but these have hardly affected the industry's morale. A majority of entrepreneurs still feel that the tide can beturned again in their favour with a little support from the government. "We are suffering price-wise. But, such a situation can come up every now and then. We are, however, sure of overcoming the problems," says Mazumdar. "Some turnaround is already being seen now and the limelight seems to be returning to India again as the buyers are now realising that the Indian economy is certainly more stable than those of other Asian countries," says Chawla.

Infrastructural support is the primary requirement, points out Magu. "Modernisation of ports for efficient functioning is a must otherwise we have to send cargo by air-freight for timely delivery, which is costly. Further, the daily custom clearance is only available till 6 pm, which should be made a 24-hour affair as heavy vehicles are not allowed to ply on the roads from 4 am to 8 pm causing a lot of trouble to exporters."

High interest rates on loans to exporters also act as a bottleneck. "The government has come out with a proposal to provide loans withlower interest rate to only those exporters who have achieved a growth in their exports last year. How can it be possible in the present scenario, when you are not able to reach your target? This scheme is of no use," says Magu.

A concessional import policy too is much in demand. Most entrepreneurs feel that they should be allowed to import the fabrics, duty-free. Instead of giving licence to the exporters, the government should give a lump sum amount in this regard. This will help the exporters in a big way, feels Magu.

But only government help cannot bring the industry back on track. There is an urgent need to do some self-introspection and re-orient the strategies, feel industry experts. Entrepreneurs will have to capitalise on the inherent design strengths present in the country to produce world-class quality instead of manufacturing low-priced garments with cheap designs, which is the trend, at present.

A planned approach to make the country utilise its true potential as a centre for quality designand manufacture is the only way to save the industry from further decline. "Many entrepreneurs have already started working on this line through judicious modernisation," says Mazumdar.

Garment fair to attract overseas buyers

The 21st India International Garment Fair (IIGF) for spring/summer collections '99 will be held from July 10-12 at Pragati Maidan, New Delhi. The three-day show has been organised by the premier garment exporters in the country and sponsored by Apparel Export Promotion Council (AEPC). More than 160 garment exporters will display their collections of woven and knit garments for men, women and children in cotton and synthetic blends.

Says Rakesh, director, IIGF: "Majority of participating buyers are from Europe and the US. We organise two fairs every year for spring and winter collections."

According to AEPC, over 1,000 overseas buyers and delegates are expected to visit the fair this year. More than 600 foreign buyers and 437 buying agents had attended the 20th IIGF.

"Wehave changed the display and presentation format this year. Everything will bear a new look as the entire setting has been changed," says Rakesh.