The impact of free trade agreements (FTAs) has been positive for the traditional export sector of readymade garments, with exports to Australia growing 5.7% on year in the first 11 months of the last fiscal, while shipments to Mauritius grew 16.8% even though the overall exports fell.
“The advantages from FTAs are now visible…The signing of FTA in the near future with the UK, which accounts for roughly 8% of Indian apparel exports, will provide a much-needed fillip to the garment industry,” Sudhir Sekhri, chairman of Apparel Export Promotion Council (AEPC), said.
In April-February, exports of apparel to Australia were at $299.4 million, while to Mauritius it was $35.2 million. Exports to the UK during the same period were at $1.14 billion. The US remained the biggest buyer with $4.2 billion.
In 2023-24, the exports of readymade garments of all textiles were down 0.25% to $ 14.5 billion. AEPC is, however, preparing a growth strategy to realise the true potential of the readymade garment sector and achieve exports to the tune of $ 40 billion by 2030.