India has targeted garment exports of US$24.9bn by 2019/20 thanks to Government support initiatives aimed at boosting manufacturing, growing exports and generating more employment.

Speaking at the 55th India International Garment Fair, Shri Virender Uppal, chairman of the Apparel Export Promotion Council (AEPC) said this fiscal year's (2015/16) exports could reach $18.7bn, an 11% increase on last year.

"We could achieve 97.66% of the target in the last FY (2014-15) registering a growth of 12.3% and $16.85bn in value terms," Uppal said. "This is possible because of the Government support/incentives based on the Chapter 3 provisions of FTP along with the duty drawback, TUFs, EPCG, interest subvention and other schemes of the Government."

The AEPC noted that India achieved a CAGR of 8.1% during the post quota period (2005-14), which, if applied, means garment export projections for 2019/2020, could touch $24.9bn.

Global apparel exports amounted to $473.6bn in 2014, of which, India exported around $16.5bn.

RMG exports hit $1.57bn for the month of May, against $1.49bn a year earlier. In the first two months of this fiscal (April-May), exports touched $3.01bn, up 7% from a year earlier but lower than growth of 12.2% for the entire 2014-15 fiscal.

The AEPC has been urging the Government to reconsider the demands of the garment sector as it awaits the imminent announcement of the country's textile budget.

Speaking at the garment fair, Uppal urged the government to finalise the India-EU FTA and the CEPA with Canada, ensure swift clearances of import and export by customs, a 3% interest subvention to mitigate the high cost of lending, which is hovering at around 11 -12% interest rates, and support from the FTP with a 5% duty credit scrip to major markets.