Indian readymade garment exports are expected to surpass the $30 billion mark by 2027, says rating agency CareEdge. This will translate into a 4.6 to 4.9 per cent share in world exports as against the current share of 3 per cent.
India’s readymade garment exports have been stagnant at around 15 billion dollars in the past five years. Currently, India has a market share of around 5 per cent in the EU and UK as Bangladesh, Vietnam and Pakistan have a tariff advantage of around 10 per cent vis-a-vis India in some of these markets.
Having adequate raw materials and a large workforce, India is poised to grab the opportunity in the global readymade garments market. India has a good presence across the cotton textile value chain from fiber to fabric while it has a limited presence in manmade fiber, which is expected to get a boost by the expected free trade agreement with the UK and the production-linked incentive scheme.
With the free trade agreements, India's share in the UAE and Australian markets are expected to increase and the trade pact with the UK would be a game changer as it will create a level playing field. Further having a presence across the entire value chain reduces transport costs and lead time, thereby providing a cost-effective solution to customers.