AEPC says PTA Anti-dumping Duty Hurting Exports of Synthetic Fibre Apparel

A day after Textiles Minister Smriti Irani called on textile exporters to move into spaces vacated by China, Apparel Export Promotion Council (AEPC) has identified top 10 product lines in four countries/ regions with major Chinese exports.

The top 10 Chinese products exported to the US, where India also has a presence include jerseys, pullovers, cardigans, waistcoats made of cotton/ man-made fibres (MMF), trousers, shorts made of cotton/ synthetic fibres, hosiery, T-shirts, singlet and tracksuits, an official release said.

AEPC Chairman Dr A Sakthivel said that India has captured $237 million of the $2.4 billion apparel market vacated by China in the US.

However, the Revealed Comparative Advantage shows India has a good potential in seven of the 10 product lines, he said.

"While there is no problem with the US market, we will need the support of the textile and commerce ministries to gain access to some of the countries. In the US, the deciding factors will be sheer competitiveness and appetite of the Indian players, while in the UK and EU early FTAs will help," he said.

Sakthivel said that the removal of anti-dumping duty on PTA will promote the growth of man-made fibre companies. "While cotton is our main products, we will now promote MMF also because the world is moving to MMF. However, we continue to promote cotton as well," he said.

The Council has similarly identified top 10 Chinese apparel exports to European Union, Japan and South Korea, and highlighted the product lines where India has the potential to make a mark.

"We will share this information with our members in an extensive outreach so that they can take advantage of the emerging scenario," Sakthivel said.

Sudhir Sekhri, Chairman, Export Promotion Committee, AEPC, said: "Of the 36 per cent space vacated by China, only 5 per cent has come our way. While there are huge emerging opportunities, there is a need for introspection as to what needs to be done."

On Wednesday, Irani urged the industry to ensure that India is not a nation of job workers but a nation of textile leaders, and also that India should not aspire to be just a sourcing hub but one that meets the end-to-end textile needs of various nations and communities.

She said that the government will identify ambitious MSMEs, who meet export compliances and delivery schedules and support them with finance, legislation, certification, quality control programmes and R&D to help them grow big.