If the Indian apparel industry plays its cards right there is a big vacuum to be filled, considering some of India’s apparel exporting neighbors are in trouble. While apparel firms look for newer markets, what would really work, according to Narendra Goenka, Chairman, Apparel Export Promotion Council (AEPC), is filling the vacuum left by countries such as Sri Lanka, Pakistan, and Myanmar.

Volume could be a little lower but there is an opportunity in terms of the challenges in neighboring countries, says the Apparel Export Promotion Council.  Pakistan is going through a tough time for energy. In Sri Lanka, the situation is dire. Sri Lanka’s exports are expected to go down by 15 per cent or 20 per cent. Myanmar has labor issues going on.

However there are challenges. Cotton prices have cooled down a bit but apparel makers have got a minimal respite from the dip in raw material costs. Customers especially from traditional big markets like US and Europe have been asking for discounts. Customers want a ten per cent to 15 per cent reduction in finished product prices but Indian exporters cannot lower prices by more than eight per cent or ten per cent. Then there is the impact of a weakening rupee. There are some headwinds in terms of the real recession in India’s traditional markets, the US and Europe.