The garment and textile industry happens to be one of the oldest industries contributing to the Indian economy. The garment industry produces a lot of items both for domestic and foreign markets.
Do you know that the garment and textile industry of India contributes around 15% to the country’s economy? This is one of the reasons why the Indian government has focused on boosting the garment and clothing exports of the country. It is aimed that this industry will lead to more than $209 billion in profits by the year 2029.
India is the 6th largest exporter when it comes to garments and textiles. So, starting a garment export business in this country is going to be highly beneficial for you. But, it is possible only if you know the correct tactics and strategies. A lot of entrepreneurs often go through many challenges while starting a garment export business. Therefore, here in this blog, we are providing you with everything that you need to know about starting a garment export business in 2023.
What do you need to know about garment exports?
There are a lot of things that you must be aware of when it comes to starting a garment export business in India.
Garment Exports: Major exported textiles from the country
Garments have turned out to be the most exported textiles from India. India exports a lot of textiles from the country.
However, some textiles are majorly in demand in foreign markets. They are:
- Traditional garments
- Kids’ clothing and apparel
- Woolen clothing
- Indian carpets
- Textiles for home
- Ready-to-wear clothing
- Kitchen linen
The top garment and textile importers of India
India is a major garment exporter providing exports to various foreign countries. But, are there any top garment importers of our country? Yes, the largest importer of Indian garments is the United States. The other countries on the list are the UAE, United Kingdom, China, Bangladesh, Saudi Arabia, and the European Union which consists of Germany, France, Spain, Italy, and the Netherlands.
Top garment exporting states in India
You must be wondering which are the leading garment-producing and exporting states in India. The list of top exporting states includes Andhra Pradesh, Haryana, Telangana, Jharkhand, and Gujarat.
India’s garment and textile industry is the second-largest industry contributing a huge amount to the Indian economy. Moreover, this industry also provides employment opportunities to the Indian population.
Documents needed to start a garment export business
If you are willing to start a garment and textile export business in the country, there are a few documents that are very essential for you. These important documents are:
- PAN Card
- Aadhar Card, Driving License, Voter ID (basically any ID proof)
- Document with your permanent address
- Import-Export Code (IEC)
- GST Certificate
- A registration license for your business
- Fire NOC
- RCMC
- Registration for MSME
- A trade license granted by the state’s Municipal Corporation Board.
How to get garment export orders?
Customers are the most vital component needed for the growth of any business. Getting more and more customers is your ultimate business goal. As an exporter, you must know the correct strategies to gain more clients.
Here are a few approaches that you can try-
- Make the most use of content marketing and social media marketing.
- Use email marketing to connect with various foreign traders.
- You can also join various export communities in your business niche.
- Participate in global trade fairs and business events to promote your business.
- Engage in conversations with the audience on various online platforms.
Various government schemes to promote garment exports
With the introduction of FTP 2023, the Indian government aims to promote more and more Indian exports in the international markets. The garment and textile industry plays a crucial role in developing the Indian economy. Hence, it has been given a lot of importance by the DGFT. Two schemes have been introduced that solely focus on the garment exports of India. These two schemes initiated by the Indian government are the Advance Authorization Scheme (AA) and Amended Technology Upgradation Fund Scheme (ATUFS).
There are also a few other schemes implemented by the government with the motive to promote the garment and clothing exports of the country. They are:
- PM Mitra Scheme
- Production Linked Incentive Scheme (PLI)
- Textile Cluster Development Scheme (TCDS)
- Rebate of State and Central Taxes and Levies Scheme, commonly known as RoSCTL.
Conclusion
The garment export industry is one of the most vital industries in the country. It contributes a major amount to the country’s economy.
If you are planning to start a garment and textile export business, you need to conduct an in-depth study of the various aspects related to this industry such as target markets, demand for goods, government schemes, and everything else. With the correct strategies and right knowledge, a garment export business will reach the ultimate heights.
Author’s Bio:
Mr. Mehul Goyal is a professional DGFT Consultant with experience of more than 30 years and specialised in the field and is offering DGFT Consulting Services like Advance Authorization Scheme, EPCG scheme, etc all over India. He is working with many importers and exporters even before DGFT was instigated in the markets
