Surat (Gujarat) [India] : The Southern Gujarat Chamber of Commerce and Industry (SGCCI) has urged the Central Government to provide incentives to Indian chambers of commerce organising international exhibitions and support warehouse development in the United States.
SGCCI stated in a detailed report to Union Commerce and Textiles Minister Piyush Goyal on the success of the Global Textile Trade Fair (GTTF) in the US that there is an urgent need to set up warehouses in the US—China has a huge network of warehouses in the US—on a cooperative concept with government funding support. Furthermore, the SGCCI intends to establish international marketing offices in the United States if they are financially supported by the government for at least three years.
The GTTF—B2B and tabletop meetings—was scheduled for three days in Atlanta and one day each in New Jersey and Los Angeles from June 9 to June 11. Nearly 1,000 business visitors from across the United States attended the exhibition, including Rudisa Paul from Australia, Donna Willet from the Direct Resource Group in America, and representatives from all major textile associations in the United States.
The GTTF 2022 exhibitors have received inquiries totaling more than Rs 200 crore in various categories.
According to Ashish Gujarati, the immediate past president of SGCCI, there is a sizable market for home furnishings in hotels and motels. There are approximately 90 lakh rooms in the United States, with approximately 40,000 rooms added each year. The home furniture market share in the United States is expected to grow by $8.22 billion from 2020 to 2025, at a CAGR of 2.53 percent.
“The United States has approximately 4.5 million Indians, and there is a high demand for ethnic wear, upholstery fabrics, home furnishing, and fabrics for ladies’ western wear such as chiffon, georgette, crepe, and satin, among others.” The US import of textiles and apparel continues to grow at a rapid pace, increasing by 32% to $54 billion in the first five months of 2022 from $41 billion in the same period in 2021, according to Gujarati.
According to the SGCCI’s report, there is a large market for knitted fabrics in the United States. Surat and India are knitted fabric hubs, and Indian manufacturers can easily access the US market. Furthermore, unlike Chinese entrepreneurs, Indian entrepreneurs have never attempted to establish warehouses in the United States. This is an excellent time to establish warehouses in the United States because Indian fabrics are in high demand and Chinese textile products face customs duties of up to 25%.