The recently released second part of the Economic Survey for this fiscal has strongly advocated making deeper penetration in the global apparel, leather and footwear exports trade. According to the survey, China’s share in these segments has begun sliding owing to rising production costs. And this offers an opportunity to India to enhance its exports base in these sectors. “In the perspective of China losing share in the global market for exports in the apparel sector on account of rising costs of production, the time is ripe for India to make forays into this market,” the mid-year survey said.
The survey, however, also pointed at some key challenges which need to be sorted out for making greater impact in the global market. “Challenges include high domestic taxes on man- made fabrics vis-a-vis cotton based fabrics; stringent labour regulations and high logistics cost,” it added.