Apparel exports cross $10 bn despite slowdown

India's garment exports stood at $10.13 billion in 2008-09, growing by a moderate 4.6 per cent over the previous fiscal despite demand erosion in the US and European economies, reeling under recession.

Apparel exports were $9.68 billion in 2007-08.

The business confidence would continue to remain low key during the first quarter of the current fiscal, Apparel Export Promotion Council (AEPC) said today.

The council had set a target of $11.6 billion in 2008-09. "We are happy that garment exports have crossed $10 billion-mark for the first time," AEPC chairman Rakesh Vaid said in a statement.

He, however, expressed concern over consistent deceleration in growth rate over the past two years.

During the first four months of 2008-09, the exports stood at $3.5 billion against $3 billion in 2007-08.

The exports saw a beating since August as the retail orders began to feel the impact of global economic recession.

The downslide ended in December and January 2008-09, as exporters' realisations improved on depreciating rupee against the US dollar. Apparel exporters were able to lower prices and bag more orders giving competition to countries like China, Bangladesh and Vietnam.

Estimates suggest that the industry employs 7 million people, including 3.9 million in export sector.