India's 2% Key Market Program Helps Stabilize Apparel Exports

According to data from the Business Club on April 1, Indian apparel exports fell by 2% between April 2010 and February 2011.

After the government launched the 2% key market plan, clothing exports seem to have benefited, especially exports to the EU and the U.S. market. According to data released by the Apparel Export Promotion Council (AEPC), the troubled clothing export industry has experienced a decline in exports for most of 2010, but so far, exports seem to have stabilized.

Data show that from April 2010 to February 2011, apparel exports fell by 2.25%. Between April 2010 and February 2011, garment exports were Rs. 45,081 crore, compared to Rs 46,120 crore during the same period of the previous year. However, the 2% key market plan, dominated by the EU market (2010-11) and the US market (April 2010-September 30, 2010), prompted a modest increase in apparel exports, although this was a turbulent period.

Mr. Premal Udani, President of the Garment Export Promotion Committee, said that this program did help garment exporters. He proposed to extend the 2% key market plan for another year (eg, to 2011-12) in order to promote exports and maintain the largest employment rate in the apparel industry.

From January 2010 to October 2010, India’s total exports to EU countries decreased by 5.3%. India's competitive countries, such as Sri Lanka, Bangladesh and China, have exported 2.98%, 0.52%, and 1.66% of their exports to EU countries. Therefore, Indian apparel also highly hopes to implement the India-EU free trade agreement as soon as possible.

He said that the development of the garment industry in India is not only conducive to the country's exports, but also created millions of urgently needed job opportunities for India while the industry is developing. The apparel industry is still the second largest job creation industry in India. At the same time, it has the ability to absorb many workers from rural areas.