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Textile ind seeks higher domestic sourcing in multi brand retail

Export target is pegged at $ 40.5 billion, which the industry fear they will not be able to achieve

Sharleen D'Souza  |  Mumbai 

Apparel Export Promotion Council (AEPC) has requested the Textile Ministry to increase the share of domestic sourcing in multi brand retail from 30% to 50%.

The council wrote to the textile ministry last week  proposing to increase sourcing by another 20% from garment exporters.

“In order to provide benefit of multi-brand retailing in India, the Government has prescribed 30% sourcing from the domestic market. TheSME sector would definitely take advantage of this.  In order to immediately take advantage of domestic sourcing, it is proposed that additional 20% sourcing can be mandated by the Government, which can be procured from the existing garment exporting firms, who are willing to take FDI route as per Circular No 1 of 2012 dated 10.04.2012,” said Dr.A Sakthivel Chairman AEPC.

Garment exporters are currently facing a slowdown due to the current economic crisis in the Euro Zone and US, which are India's biggest export markets.

If the government allows the additional 20% sourcing from garment exporters then this will increase employment and help divert their capacities as well,” Saktive said. Also, garment exporting units have the experience required in dealing with overseas buyers, which have high standards of working.

For the current financial year, export target is pegged at $ 40.5 billion, which the industry fear they will not be able to achieve and exports may remain the same as the previous year.


Last financial year textile exports stood at $34 billion. India’s garment exports fell 10.5% year-on-year to $1.1 billion in June due to weak export demand. According to the Apparel Export Promotion Council, exports were $1.2 bn in the same period last year.

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First Published: Tue, September 25 2012. 11:59 IST
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