Network Of Apparel Parks To Boost Exports By $10bn

New Delhi, April 26 | Updated: Apr 27 2004, 05:30am hrs
The proposed network of a dozen apparel parks, which will become operational in the next 12 to 15 months, will provide incremental textile and apparel exports of $8 billion to $10 billion per annum. Indias textile and apparel exports in fiscal 2003-04 are expected to be over $12 billion.

Speaking to FE on the sidelines of a seminar here, textile secretary SB Mohapatra said, By June, the first apparel park will come up at Tripur, followed by another five to six by the year-end in places like Ludhiana, Surat, Chennai, Bangalore, and Indore. The governments plan is to have 12 such centres across the country in the next 12 to 15 months.

Mr Mohapatra added, each park will entail an investment of Rs 20 crore. The Tripur facility, for instance will be spread over 100 acres with 70 manufacturing units which would employ around 20,000 people.

Mr Mohapatra said that the park project would be completed by the end of 2005 and that it had the potential to generate exports business of around $8 billion to $10 billion a year.

With barely 200 days left for the dismantling of the multi fibre agreement (MFA) quota restrictions, India is now betting on the development of apparel parks to seize emerging opportunties. The parks are designed to create a focus and scale of economies in a country where around 4,500 apparel exporting units (out of 7,500 exporters) do exports of less than Rs 50 lakh a year each, and where only 15 companies are doing exports of around Rs 100 crore a year each.

As per a recent McKinsey report, Indias exports could grow at 15-18 per cent a year and reach $25-30 billion by 2013 if radical reforms are implemented.

Mr Asutosh Padhi of Mckinsey & Company said that if the countrys aspires to secure exports of $25-$30 billion by 2013-2015 in textile and apparel, the scale of operations will be critical. It should have at least half a dozen exporters (vertically integrated) with $1 billion in revenues, he added.

Commenting on the preparedness of the Indian textile industry to meet new challanges, Mr Arvind Singhal, managing director, KSA Technopak said that India had probably missed the bus.

Speaking to FE Mr Singhal said, I see a 10-15 per cent downward pressure on export prices in the year 2005 (post quota regime as big buyers negotiate for best prices from all over the world).

He said what was being attempted now in the last couple of years should have been started a decade ago.