Apparel export may fall 5% on global slowdown

Sentiment remained weak in domestic sales after many years; may improve with govt's recent incentives for textile sector

Apparel export was $4 billion in the June quarter of 2015. For all of 2015-16, it was $16.5 billion.

India’s apparel exports are likely to decline by five per cent during the first quarter (April-June) of the current financial year, due to the ongoing global economic slowdown and uncertainty over recovery in the months to come.

Apparel export was $4 billion in the same quarter of 2015. For all of 2015-16, it was $16.5 billion. This year’s target is $20 billion.

“Compared to last year, sentiment in the sector remains weak due to the global economic slowdown. The peak summer demand season has not gone as we expected. We, therefore, estimate it will be lower by five per cent in this quarter,” said Rahul Mehta, president, Clothing Manufacturers Association of India (CMAI).

Also, he said, “for the first time in many years, sentiment for the domestic apparel sector also remained weak.”  So, domestic sales are expected to see flat to marginal growth in the June quarter.

He was announcing the CMAI’s 63rd National Garment Fair, here between July 13 and 15. Around 800 garment brands have registered to showcase their products.

Britian's vote to exit the European Union is thought unlikely to affect India's apparel export in the near term. there could be some impact in the long term. There are two years to go for the actual exit from the date of formal announcement and that gives time for things to settle, say sector experts.

Europe took 37 per cent of our $16.5 bn apparel export, with the UK taking 42 per cent of Europe's contribution.

The Rs  2,50,000 crore domestic apparel industry, in addition to the Rs 1,11,500 crore exporting ones, is dominated by the unorganised sector, with nearly 70 per cent contribution.