April 20, 2024

UK & EU FTA’s Will Be Game Changers: AEPC Chairman

The Apparel Export Promotion Council (AEPC) Chairman Narendra Goenka has expressed enthusiasm regarding the proposed free trade agreement with both the United Kingdom and the European Union.

“The FTA will be a game changer for the industry,” Goenka said, while emphasising the significant advantages the agreement would offer apparel exporters.

Goenka informed that talks with the UK are in the final stages, while discussions with the EU are progressing rapidly.

He stressed on the potential benefits of signing an FTA deal with both, while asserting that the EU would provide a substantial advantage to Indian garment exports.

Goenka identified two main factors to address the issue of poor export competitiveness of Indian apparels.

“First is the poor economies of scale and second, the absence of vertically integrated units compared to competing countries like Vietnam,” he added.

He stated that most Indian apparel manufacturing units have an average of 250-400 stitching machines, whereas rival nations boast an average of 800-1000.

“This disparity limits the industry’s capacity to invest in productivity-enhancing technologies,” he concluded by saying.

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