Ready-made garment exporters from Tirupur and Noida are exploring the markets in Japan, Canada, and Australia as orders from the United States and Europe continue to decline.
These two regions before the recession were their main buyers and they were operating at full capacities to execute their orders. They, therefore, felt no need to look elsewhere. Now fearing a deeper downturn in the US and European Union, they are exploring the next best avenues. Luck is also on their side as China is the main supplier of RMG to Japan, and Australia has been paralyzed by frequent Covid-19 like outbreaks.
Lalit Thukral, president of Noida Apparel Export Cluster said that Japan is a big RMG market but it buys around 5 percent of its clothing from India. He said with covid uncertainties in China the Japanese are also looking for alternate sources.
He said the Japanese response to overtures by Indian apparel exporters has been very encouraging. Moreover, the FTO with Australia is effective from January 1.
2023 is another good opportunity for Indians to diversify.
It is not only India that apparel markets outside the United States and Europe are the main focus of ready-made garments suppliers the world over because of two reasons. The first is that the US and European markets have reached saturation and competition is very sharp. Another factor that has forced apparel exporters to look elsewhere is that the orders are declining in these two major markets due to the global recession.
