A look at the growing potential of India's fashion, apparel, and textile trade with ASEAN countries
India's relationship with the Association of Southeast Asian Nations (ASEAN) is blossoming, driven by the 'Act East Policy' and a shared vision for economic growth. Here is a look at the exciting potential for collaboration in the fashion, apparel, and textile sectors, drawing insights from the provided article, current data, and expert opinions.
India-ASEAN trade partnerships
In India-ASEAN trade, apparel and textiles are key sectors and it is driven by several factors. Uppermost is the complementary economies as India's strength in raw materials and skilled labor complements ASEAN's manufacturing prowess and growing consumer markets. The India-ASEAN Free Trade Area (AIFTA) has significantly reduced trade barriers, boosting bilateral trade. Also, they have shared cultural heritage and aesthetics that facilitate a deeper understanding of consumer preferences. And initiatives like UPI-PayNow linkage enhance financial transactions, making cross-border trade smoother.
In fact, Singapore's robust trade and investment relationship with India exemplifies the potential for collaboration. As the largest source of FDI into India, Singaporean companies are actively investing in India's fashion and textile industries. On similar lines, platforms like Shopee and Lazada are witnessing an increase in cross-border fashion trade between India and ASEAN. Indian ethnic wear and textiles are gaining popularity in Southeast Asia, while ASEAN's trendy apparel finds a market in India.
Table: India ASEAN trade overview
|
Indicator |
Value |
|
India-ASEAN total trade (2018-19) |
$96.79 bn |
|
Projected India-ASEAN total trade (2025) |
$300 bn |
|
Cumulative FDI from Singapore to India (2000-2024) |
$ 159.94 bn |
|
ASEAN's projected growth rate (2024) |
4.60% |
The way forward
However, despite the collaborations there are some challenges in future growth. Non-tariff barriers are bug bear as technical regulations and standards can hinder trade. Harmonization efforts are crucial. Improving connectivity and streamlining supply chains are must to further enhance trade efficiency. Simultaneously, promoting ethical sourcing and sustainable production practices is essential for long-term growth.
