The Hindu Business Line : Readymade garment exports up in Apr-Dec

EVEN as readymade garments (RMGs) constitute a considerable chunk of India's textile exports, RMGs exports to quota restricted countries registered a reasonably modest positive growth during the first three quarters of the current fiscal, kindling the prospect of hitting the $5 billion target of apparel exports for 2003-04.

Unpublished official figures collated by the Apparel Export Promotion Council (AEPC) show that exports of readymade garments during the period April to December 2003 to quota countries amounted to 780 million pieces valued at $3,154.6 million, representing a decrease of 3.05 per cent in terms of volume but a moderate spurt of 5.18 per cent in terms of value when compared to the same period of 2002.

Exports to the US, the single biggest market for Indian apparel, amounted to 270.9 million pieces valued at $1,399.3 million, representing a decrease of 10.06 per cent in terms of volume and 5.15 per cent in terms of value, when compared to the corresponding three quarters of 2002. While the rupee appreciation vis-à-vis US dollar was partly attributed to the shortfall in export receipts, there was also unusually cool climate throughout 2003 because of which the summer-wear which is a traditional export item of India could not get shipped in bulk volume. Besides, some least developed countries too are getting duty-free access on import of garments to the US, affecting Indian exports.

Exports of readymade garments to the 15-member European Union (EU) during the period under review amounted to 470.5 million pieces valued at $1,629.6 million. In comparison to the corresponding period of 2002, there has been a modest increase of 3.07 per cent in volume but a massive increase of 17.81 per cent in terms of value, as the Indian rupee did not appreciate against euro as much as it did with the US dollar.

Exports to Canada during the first three-quarters of 2003-04 amounted to 38.8 million pieces valued at $125.7 million showing a decline of 17.52 per cent in terms of volume and 9.11 per cent in terms of value when compared to April-December 2002.

If the calendar year 2003 apparel export is reckoned, India's exports of readymade garments during the period Jan-Dec 2003 to quota countries amounted to 11,799.9 million pieces valued at $4,642.5 million which represents "a significant increase of 3.24 per cent in terms of volume and 13.11 per cent in terms of value, when compared to the same period of 2002."

However, exports to the US, during 2003 amounted to 393.7 million pieces valued at $2,031.1 million, which was a decrease of 1.03 per cent in terms of volume but an increase of 4.11 per cent in terms of value, despite the creeping appreciation of the Indian rupee vis-à-vis the dollar.

In the month of December, 2003 alone, export of garments to restricted countries has been 95.5 million pieces valued at $408.1 million, against 99.6 million pieces valued at $354.9 million, marking a decrease of 4.12 per cent in terms of volume but an increase of 14.99 per cent in terms of value.

Officials in the Textile Ministry contend that AEPC figures do not reveal export to outside bilateral area (OBA) countries, as they are restricted to quota countries only. Once the full figure for both quota countries and OBA countries would be tallied, exports of readymade garments overall would definitely show a positive trend as Indian textile exports units in general and garment ones in particular had made foray into non-traditional markets too, keeping in view the dismantling of the multi-fibre arrangement (MFA) regime by the end of this year.

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