Garment exports show early signs of revival after two years of decline

After falling for two years in a row, garment exports are showing early signs of a revival. But it will take more than just government support to sustain it

India’s garment exports have been on a steady slope downwards, falling for a second year in a row in 2018-19. At $16.37 billion, apparel shipments were 2 per cent lower than in FY18.  This fall has come after exports grew an impressive 9.8 per cent annually during 2009-10 to 2017-18.

The reasons for the slowdown range from intense competitive pressure from Bangladesh, Vietnam and Sri Lanka, which have a cost advantage over India, subvention of rebates after GST and over-reliance on one particular type of fabric, namely cotton, for making garments. These headwinds buffeted the growth momentum of India’s exports over