Despite subdued hopes for the US$6 billion export earnings milestone this year, Sri Lanka’s apparel sector is strategically pivoting towards capturing a larger market share in its neighboring giant, India, as articulated by Hasitha Premaratne, Managing Director of Brandix Group, a leading apparel maker in the country.
Addressing a post-budget forum organized by CA Sri Lanka, Premaratne emphasized the immediate need for Sri Lanka to optimize its market access, stating, “It is important to look at what we can do next year. We need to try and see how to make a billion dollars in the Indian domestic market,” highlighting India as a crucial market that cannot be overlooked.
Premaratne echoed the collective sentiment within the apparel sector, urging swift actions to enhance market access to India. Central to this effort is the ongoing negotiation under the India-Sri Lanka Free Trade Agreement (FTA), with a particular focus on increasing the duty-free quota on garments. Currently, Sri Lanka can export eight million pieces of garments to India duty-free. Premaratne expressed hope for the removal of this cap or its substantial extension.
“The Indian domestic market can be a good opportunity for us,” Premaratne asserted, underlining the vast consumer base of nearly 300 million people in the middle-class segment who are transitioning into high-spending mode.
In a strategic analysis, Premaratne identified the ongoing tensions between India and China as an advantageous opening for Sri Lanka. He emphasized the island nation’s capability to bridge the gap left by fewer Chinese products entering India, especially in segments such as sportswear. “We have the capability in Sri Lanka to make those world-class products. Without the FTAs, we are doing it, but with the FTA, we can do it better,” he remarked.
As negotiations continue, the Sri Lankan apparel sector is positioning itself to harness the immense potential of the Indian market, leveraging its manufacturing prowess to cater to the rising demands of the growing middle-class consumer base. Source – Dailymirror
