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.
Releasing the data, the Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the growth was amidst the tight and fast changing economic scenario.
Exports in dollar terms between April and July 2013 were up 13 per cent over the same period of the previous financial year to reach $4,841 million. However in rupee terms they were higher at 18 per cent at Rs 27,538 crore compared to Rs 23,300 crore between April and July 2012, he said.
Commenting on the US and EU markets, he said, “India was in the sixth position as at end May this year, with apparel exports to the US at $285 million, up 3.3 per cent over the same month of the previous year.
“But our apparel exports to the EU slipped to -1.1 per cent during the first five months of 2013 calendar year,” he added.
On the sliding rupee, he said, “It looks advantageous in the short run, but a stable currency and exchange rate is good in the long run. At this juncture, buyers are asking for discounts and since we operate on thin margins we are unable to concede to their demand. Exporters with high import content are facing huge problem as they have to pay more now, putting a dent to their profits. The import component in readymade garments is about 25 to 30 per cent of the product,’ he added.