Apparel sector SMEs eye Indian market for fresh orders

In an effort to reduce the shocks faced by the local apparel sector, due to the increase in global economic challenges, the small and medium enterprises (SMEs) in the industry are moving towards the Indian apparel market.
One such entity is JIA MODA, which is actively exploring the Indian market, since the industry experienced a drop in orders.
“One cannot overlook the potential of trading with India. JIA MODA’s export capacity to India has significantly grown and now accounts for 80 percent of our output. However, there is further room for expansion, if we fully leverage the Indo-Sri Lanka Free Trade Agreement (ISFTA),” said JIA MODA Founder and Managing Director John De Silva.
The entity is in the process of launching an online platform, specifically catering to the Indian market, as a measure to enter into the retail market further, under the brand JIA MODA. Plans are also afoot to open an additional two new outlets in Sri Lanka and in Paris. 
De Silva noted that Sri Lanka’s potential should be harnessed wisely and instead of chasing low-value exports, the focus should be on utilising the country’s unique strengths and making the most of available resources, from raw materials to fabric. 
“The opportunity is right next door,” he asserted.
India is one of Sri Lanka’s largest export partners, with over US $ 800 million in trade carried out in 2022, showing a notable increase in textile imports. This increase is not limited to raw materials but includes finished goods. 
However, Sri Lanka is permitted to export only eight million pieces of ready-made apparel to India, without applicable duties. The Joint Apparel Association Forum (JAAF) has consistently called for the possibility of increasing the quota to allow Sri Lanka to use this as an avenue to boost its apparel exports to India.
JAAF Chairman Sharad Amalean recently revealed that discussions are being held with the relevant government counterparts to revisit the ISFTA, stating that the country must not overlook the opportunity to engage in trade with the neighbouring country.  
“It is pivotal that we strategise to become an integral part of it. This will be especially crucial for SMEs, which have been essential for the continued development of Sri Lanka’s apparel sector and have felt most of the impact with the recent decline in orders in apparel exports,” he noted.

In Sri Lanka, approximately 80 percent of SMEs work in partnership with larger export firms.
JIA MODA has embraced the opportunity to work with this US $ 24 billion Indian apparel market, given that it opens opportunities and allows the company to subcontract for major brands and be an integral stakeholder in the fashion industry. 
Located in the suburbs of Colombo, JIA MODA is a study in resilience, where for over 20 years it has provided employment to over 250 individuals; most of them have been with the company since inception. 
De Silva, who first launched his company in Paris, made a conscious decision to shift his manufacturing base to Sri Lanka. He cites the latent talent that could be developed to create high-end apparel by merging his European experience and knowledge as the competitive edge Sri Lanka has.