Garment industry may witness exports rise
The Dollar Business Bureau
The government’s recent initiatives to support India’s garment sector is expected to raise the country’s garment export to $20 billion during the current fiscal, said an industry official.
Last week, the Cabinet had approved Rs.6000 crore for the textile and apparel sector with an aim to create one crore jobs in the sector and also to attract $11 billion investment.
Clothing Manufacturers Association of India (CMAI) President Rahul Mehta said, “India's garment exports, estimated at $16.80 billion now, are expected to reach $20 billion during the current fiscal. The special package announced by the government will not only help in attracting large investments but also enhance production capacity.”
Mehta also said the inclusion of the state-level taxes in calculation of the duty drawbacks will be able to provide a relief to the exporting segments.
However, the continuing downturn in the global economy continues to negatively impact the garment industry of India.
The total exports of the apparel industry in India stood at around $4 billion in April- June 2015. During the 2016-17 first quarter, the industry may witness a 5 percent decline in the exports due to lack of demand in the global markets.
The domestic industry has been facing a dull market situation. It may also witness flat growth or a 2% decline in the consumption for the quarter ended June 2016.
Referring to the Brexit impact on the apparel industry, Mehta said there may be fallout of the referendum on the lines of business, but there may not be any larger impact on the exports of garment from India to the European Union or the UK.
Mehta also demanded an aggressive follow-up for the Free-Trade Agreements with the EU and other countries.