With another global slowdown affecting imports to the US and EU, Indian apparel exporters are an unhappy lot. But since business has to go on, they decided to look for newer destinations, and Russia has appeared as the much awaited breather for the export community.
Exports to Russia are expected to grow at 30-40 per cent over the next two years. The Russian economy is less affected by the slowdown compared to Europe and the US, and the fashion conscious consumer in the region are proving beneficial for Indian exporters.
Indian apparel manufacturers shipped garments worth $120 million (Rs 614 crores) to Russia in 2010, or 1 per cent of the total $11 billion (Rs 5,637 crores), compared with the 70 per cent share of Europe and the US.
The Apparel Export Promotion Council (AEPC) is now looking at having another interaction with its Russian counterparts in September, hopes that exports to Russia would touch $170 million (Rs 871crores) in 12-24 months.
Japanese demand too helped Indian garment exports, which rose to 4.4 per cent last year after a 2.1 per cent drop the previous year, according to AEPC data. That followed a February free-trade agreement that removed tariffs on several items, including clothing.
Since 1997
