India apparel industry has been struggling from quite a while now to increase its exports to the world. A stronger dollar has also been a worrisome to many. However, the tumbling value of Rupee against the Dollar has come as a strange respite to the Indian apparel exporters, as exports dropped by just 1 percent (in USD) in July 2018, while it soared 6 percent in INR terms.
Notably, exports plunged 14 percent in the first four months of the current financial year.
ICRA Limited, an Indian investment information and credit rating agency, has projected that garment exports from the country will grow at 1-2 percent rate in the remaining months of the FY 2019.
It is being said that the toughest phase for the industry is now over, and with quicker GST (Goods and Services Tax) refunds and clarity over the rate of export incentives will further help the industry recover.
“Government policies are more tuned towards aiding the apparel sector. We expect a 5-7% growth in apparel exports in the current fiscal,” Sanjay Jain, Chairman, Confederation of Indian Textile Industry (CITI), explained.
On the similar lines, Raja M Shanmugham, President, Tirupur Exporters’ Association (TEA), said that things are quite positive for the industry now. “The trade war between the US and China would also help in growing our exports,” he added.
In the longer run, garment export companies will have to take advantage of the declining Chinese share in the market, to amplify shipments.