06 January 2025, Mumbai
Dr A Sakthivel has officially assumed his fifth term as Chairman at Apparel Export Promotion Council (AEPC) as of January 2026, entering a leadership period defined by a ‘trade war’ landscape.
The Indian apparel sector is currently grappling with a 50 per cent tariff recently imposed by the United States, a measure that endangers roughly $5 billion in annual exports.
With the US accounting for one-third of India’s garment shipments, Dr. Sakthivel’s immediate mandate involves a strategic redirection toward the European Union and the United Kingdom to mitigate an estimated 6 per cent to 9 per cent revenue decline projected for FY26.
Capital incentives for synthetic and technical textiles
To counter traditional export volatility, the AEPC is aggressively advocating for the expansion of Man-Made Fiber (MMF) and technical textiles.
In a significant policy move this month, the Ministry of Textiles extended the application deadline for the Rs 10,683 crore Production Linked Incentive (PLI) Scheme to March 31, 2026.
This extension aims to boost the 91 companies already selected, who have collectively committed Rs 7,731 crore in investments.
Under Dr. Sakthivel’s guidance, the council is facilitating MSMEs to leverage these incentives, targeting a long-term shift away from cotton dependency to higher-value synthetic garments that face fewer global trade barriers.
ESG compliance as a new market entry requirement
Sustainability has transitioned from a corporate preference to a legal necessity. Starting in 2026, the European Union's ‘Digital Product Passport’ (DPP) and Eco-design regulations will require exhaustive traceability for every garment sold in the bloc.
To address this, AEPC has launched capacity-building programs to help exporters document carbon footprints and social labor standards.
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This ‘do or die’ compliance phase is critical for the sector's goal of reaching $100 billion in exports by 2030, ensuring that Indian products remain competitive against lower-tariff rivals like Bangladesh and Vietnam in the premium Western markets.
AEPC is the official body of apparel exporters in India, providing invaluable assistance to Indian exporters and international buyers.
Specializing in market diversification and policy advocacy, the council oversees a sector that employs 45 million people.
Its 2026 roadmap focuses on scaling MMF production and achieving ESG certification across its 8,000+ member base to sustain global trade volume.
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