CHENNAI: As calls for boycotting Chinese products gains momentum, the apparel industry is bracing up to tackle the situation by searching for low-cost alternatives to source raw material.
The Apparel Export Promotion Council (AEPC) has been promoting local production of goods, that are normally imported from China.
Industry experts feel that the rising anti-China sentiments provide an opportunity for India to grow as an alternative to Chinese market.
Currently, the apparel industry is dependent on China for raw materials ranging from fabric to accessories, which includes needles and buttons.
According to data provided by AEPC, India in 2019 imported fabric worth U$ 907 million, accessories worth $ 418 million and apparel worth $ 316 million from China. The figure speaks volume about the dependency of the industry on the Chinese market. However, experts
believe that China is replaceable and now is the best time.
“We import manmade fibre textiles from China because of its low cost. To counter that, we have already started talks with local manufacturers, who have potential and we are chalking out ways to boost them. With a little handholding from the government, I am hopeful that we can outdo China,” said AEPC chairman A Sakthivel.
He added that the council has asked its members to diversify sources of raw materials for apparel manufacturing as the supply from China was already affected due to the coronavirus outbreak. “We are closely studying the industry in countries like Japan, Indonesia which can be alternative fabric suppliers to our manufacturers,” Sakthivel said.
The council has also taken up the task to identify product lines in the European Union, the US and South Korea which are showing decline in Chinese exports, which Indian manufacturers can tap.
“The anti-China sentiments can work as new opportunities for local manufacturers. With little upgradation, we can fill the gap and India has the potential to produce raw materials for both exports and needs in India,” said Rahul Mehta, chief mentor of Clothing Manufacturers Association of India.
“The cheap cost and fast delivery of China has affected the domestic supply base. If Indian garment manufacturers look at alternatives, including local sourcing, it may increase the finished goods cost by 3-5 per cent. Only if buyers are ready to pay a little more, things can work,” said Raja Shanmugam, president of Tirupur Exporters Association, a major textile hub.