Indian apparel exporters, known for their proficiency in white label manufacturing for global brands, are now redirecting their efforts towards promoting Indian national and local brands in the international arena. The Clothing Manufacturers’ Association of India (CMAI) believes that the growing strength of home-grown brands, along with their capacity to provide international standards at competitive rates compared to global counterparts, could significantly boost India’s share in the global apparel trade.
As part of its efforts to introduce Indian brands to international markets, CMAI recently hosted its first Brands of India exhibition in the UAE.
“We could showcase close to 350 Indian brands to the buyers in the Middle East and North Africa (MENA) region,” said Rajesh Masand, President of CMAI, adding, “We wanted to begin from a place which has a large number of Indian diasporas.”
As per CMAI, India annually exports approximately 1.1 billion USD worth of apparel to the UAE, with an anticipated annual growth rate of about 10-15%.
CEPA Impact: Opening Doors for Indian Apparel Exports
“The Comprehensive Economic Partnership Agreement (CEPA) is expected to give a boost to India’s apparel exports to the region,” said Jayesh Shah, Vice President of CMAI.
The CEPA, signed in May 2023, has removed the import duty on goods exported from India to the UAE. This move is expected to give a boost to Indian apparel exports. Bangladesh, a competitor of Indian apparel exporters, gains an advantage with duty waiver under the Least Developed Country (LDC) category.
The UAE-based retail chain, such as the Lulu Group, anticipates that the apparel segment will benefit the most from the CEPA agreement.
“The Brands of India exhibition helped Indian manufacturers establish trade relationships with buyers who cater to UAE, north Africa and parts of Europe,” said Shah.
India stands as the UAE’s second-largest apparel exporter, trailing only behind China. Indian apparel exporters highlight that their strength, compared to counterparts in China or Bangladesh, lies in their capacity to handle smaller, customizable orders. Unlike China and Bangladesh, known for mass production, Indian exporters assert their ability to accept orders as low as 150 pieces of a garment, offering greater flexibility to cater to the specific needs of buyers.
“We can customise the orders according to the prints, designs and show our creativity,” said Shah.
CMAI anticipates that events such as Brands of India exhibition will assist Indian manufacturers of branded clothing in comprehending the evolving global demands related to sustainability, design, and other aspects.
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