Garment industry to touch 12 million pieces capacity

While an earlier target of 17 million pieces capacity set in 2009 is yet to be achieved, the garment industry this year is anticipating touching 12 million pieces capacity, up from 9000 million pieces in 2009.

"The industry had set a target of 17 million pieces per annum capacity target in 2009. However, while the same could not be achieved, the estimated capacity of the garment industry is now expected to touch 12 million pieces," said an AEPC official on condition of anonymity
However, the new capacity is a result of not only additions made through setting up of new units, but also reduced capacities among smaller units.

Apparently, in a document titled 'AEPC Vision 2015 for the Apparel Sector', the council had envisioned apparel exports and capacity at $34 billion and 17000 million pieces for 2015, respectively. However, in 2014-15, the industry is expected to achieve only $ 17 billion of apparel exports, about 13-15 per cent growth over last year. What's more, as per the document, investment worth Rs 19,000 crore was also estimated in garmenting sector for capacity addition to 17000 million pieces.

However, the AEPC official stated that global economic trends coupled with domestic factors led lower growth rates. "Nevertheless, the industry is now on track since 13-15 per cent growth rate is a healthy rate," the official added. Last year, Indian apparel exports were able to post a healthy growth rate of 15.5 per cent at $14.9 billion in 2013-14 as against $12.9 billion in 2012-13, thanks to revived demands from the US and European markets. At 13-15 per cent, Indian apparel exports are expected to touch $16-17 billion for the year 2014-15.