The US and the European region still account for over 65 per cent of the country's total textiles exports. The economic slowdown in both regions has led to lower demand from buyers based there, forcing India’s exporters to scout for business in South American, southern and western Africa., according to an officer with the Apparel Export Promotion Council (AEPC).
Exports to South America are limited to about three to five percent of the overall apparel exports pie, said the AEPC officer. “But exporters are thinking of investing in plant and machinery in south American countries,” the officer said requesting anonymity.
“Exporters eyeing investments in South America, would do so to better serve the local markets. Intra-region trade gets easier when one has a manufacturing unit in that region,” the officer said.
Some 3,000 AEPC members export to South America, the officer said. AEPC has on its website, a report detailing land / resources acquisition policy for 10 countries in that region.
Israel is another growing market for India’s apparel exports – India’s exported apparel worth $34 million in 2011, an 80 percent jump over the previous year, according to news reports.
The Indian government, in August, raised the annual apparel export target to $18 billion, from $17 billion, according to news reports.
The target for overall textile exports is $40 billion during the 2012-13 financial year, news reports said.