Why in news?
Veteran exporter A. Sakthivel was elected chairman of the Apparel Export Promotion Council (AEPC) for the fifth time on 6 January 2026. He replaced Sudhir Sekhri and announced plans to work closely with the Indian government and apparel industry to expand market access, improve sustainability and tackle tariff barriers in key export markets. Sakthivel has been a driving force behind the development of Tiruppur into a global knitwear hub and intends to push for greater support to micro‑, small‑ and medium‑sized exporters.
Background
The Apparel Export Promotion Council is the apex body of garment exporters in India. It was set up in 1978 under the Foreign Trade (Development and Regulation) Act to promote and regulate the export of readymade garments. The Council consists of representatives from the central government, state governments, exporters, industry associations and textile experts. Its mandate includes formulating strategies for export growth, organising trade fairs and buyer–seller meets, conducting market research, and advocating on behalf of exporters with policy‑makers. AEPC also runs skill‑development programmes, issues export certificates and sets standards for quality and compliance.
Key points
- Support to MSME exporters: Sakthivel met Finance Minister Nirmala Sitharaman seeking an increase in the cap on the interest subvention scheme for micro‑, small‑ and medium‑scale exporters so that they can access cheaper credit and remain competitive.
- Expanding market access: The new chairman plans to work with the government to negotiate better trade agreements and address high tariffs imposed by countries like the United States on Indian apparel. Diversifying into sustainable fabrics and compliance with global standards are part of his strategy.
- Legacy of Tiruppur: Sakthivel helped transform the town of Tiruppur in Tamil Nadu into a leading knitwear export hub. Exports from the cluster grew from roughly ₹15 crore in the mid‑1980s to about ₹45,000 crore in 2024–25. His experience in building supply chains and meeting global quality norms is expected to benefit AEPC members.
- Role of AEPC: The Council acts as a bridge between exporters and policy‑makers. It offers certification services, helps firms comply with rules of origin and labour standards, and provides data on emerging markets. By organising trade fairs and participating in international expos, AEPC showcases Indian apparel to buyers around the world.
Significance
- Boost to exports: Apparel exports employ millions of workers in India, especially women. Leadership with experience can help navigate global headwinds like protectionism and supply‑chain shocks.
- Policy advocacy: AEPC’s engagement with the government ensures that exporters’ concerns on taxation, logistics and sustainability are addressed in trade policy.
- Focus on sustainability: International buyers are demanding traceable supply chains and eco‑friendly production. AEPC’s work on compliance and standards will help Indian manufacturers meet these expectations.
Sources: DEVD
