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Value-added services for Indian apparel sector
Issue date:01/06/2010
ATA Journal for Asia on Textile & Apparel - Jun 2010 Issue
Source:Journal for Asia on Textile & Apparel
By Ajay Sinha & Staff Reporters
There are a number of associations in India with an aim to promote the national apparel sector by organizing apparel trade fairs, offering views and advice for long-term development of the industry, providing testing services and the issuance of certificates of origin and more.

CMAI

Being one of the largest industry associations representing apparel makers in India, Clothing Manufacturers Association of India (CMAI) is committed to providing updates for its members.

Rahul Mehta, CMAI President, told ATA Journal that CMAI is the pioneer and most representative association of the Indian apparel industry for over four decades.

It has a membership base of over 20,000 companies, including readymade garment manufacturers, exporters, retailers and related industry. With its headquarter in Mumbai, CMAI also has branches in New Delhi, Bangalore and Pune.

On the role of CMAI, Mr Mehta explained that the association acts as a catalyst of change in the industry by interacting with the government on matters of policies that impact the future of the Indian apparel industry. Representing the industry's viewpoint in matters like sales tax, VAT and more for the domestic apparel making sector and export/import (EXIM) policy procedures and more for the apparel export sector are important amongst such issues, he said.

The association also guides its members on compliance with various government regulations.

Furthermore, CMAI members have access to updated trade statistics, potential markets, information on international fairs and assistance in participating with these fairs. It also plays a large role in identifying new markets and leading trade delegations to various countries.

CMAI initiated the organisation of a national garment fair and a number of regional apparel fairs since 1982 to connect domestic apparel manufacturers with retailers, distributors and agents across the country. This is another major contribution of CMAI, Mr Mehta added. "These fairs have not only become the most important annual trade events for the Indian apparel industry's domestic market, but have substantially contributed to the rapid growth of the overall market size," he said.

In addition, the association operates a well-equipped testing laboratory to test the physical and chemical characteristics of yarn, fabrics and garments. Besides, CMAI is actively involved with issuance of certificates of origin for export invoices.

AEPC


The Apparel Export Promotion Council (AEPC), since 1978, is an official body of apparel exporters in India providing assistance to Indian exporters as well as importers/international buyers who choose India as their preferred sourcing destination for garments.

Recently, AEPC has observed that raw materials for the manufacture of finished apparel products are exported to neighbouring countries like China, Bangladesh and Pakistan in recent months, undermining the development of India's apparel making industry.

AEPC chairman Premal Udani said early this May: "The government should calibrate exports of raw material to encourage the textile and apparel sector which ranks as the second largest employment generator after agriculture." He explained that job creation is important to India, and raw material exports should be dis-incentivised as they take jobs away from our country and create them in competing countries.

In 2009-10, apparel exports totaled US$9.7 billion compared to US$10.95 billion in the previous year, marking a decline of 11.42%. "A 10% growth in the current fiscal year (2010-11) is a very optimistic scenario, which may or may not happen, depending on access to raw material at reasonable rates," Mr Udani said. (Background information of AEPC can be found under Association News in ATA October 2009 on p. 22)

CIAe

From its establishment six years ago, the Confederation of Indian Apparel Exporters (CIAe) has contributed actively through its online presence as well as offline activities relevant to apparel export trade, according to the president, Amit Goyal.

Mr Goyal explained that CIAe aims to bridge the gap between apparel exporters and government officials on issues related to the industry. The association also provides information of sea shippers and air freighters.

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