India’s garment exports grew by 19 per cent year-on-year to $1.27 billion in July on the back of increasing demand in developed economies such as the US.
Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said garment exports to the US has witnessed a growth of 3.7 per cent during the first five months of 2013.
During April-July 2013-14,garments exports grew by 13 per cent to $4.84 billion,AEPC said in a statement.
However,Sakthivel said European market is still not recovering. The US and Europe together account for about 60 per cent of the country’s total apparel shipments.
“Demand for Indian products are still not increasing in the EU markets. Apparel exports are declining in Europe,” he said.
On depreciating rupee,Sakthivel said a stable currency and exchange rate is always good in the long run. “We want buyers to have long term contracts. It is advantageous in the short run; however,it is pushing up the manufacturing cost,” he added.
He said on account of deprecating rupee,buyers are asking for discounts.
“Those exporters with high import content of products are facing huge problem as they have to pay more now which is putting dent on their profits,” he said.
Ready-made garment products have almost 25-35 per cent import content.
In 2012-13,apparel exports declined by 6 per cent to $12.92 billion.
Further,the Chairman asked the RBI to include export sector in the priority sector lending of all banks,a move which will help exporters in getting easy and affordable credit.