You are here: Home » PTI Stories » National » News
Business Standard

India's garment exports may hit USD 20 bn in FY17

Press Trust of India  |  Mumbai 

India's garment export is expected to rise to USD 20 billion during the current fiscal, helped by the new initiatives announced by the government for the sector, an industry official said today.

The Union Cabinet last week approved a Rs 6,000 crore package for textiles and apparel sector with an aim to create one crore new jobs in three years and attract investments of USD 11 billion with an eye on USD 30 billion in exports.

"India's garment exports, estimated at USD 16.80 billion now, is expected to reach USD 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," Clothing Manufacturers Association of India (CMAI) president Rahul Mehta told reporters here.

The inclusion of state-level taxes in the computation of duty drawback will provide a major relief to the exporting segment, Mehta said.

However, the prevailing downturn in the global economy continues to adversely impact India's garment industry. During the first quarter ended June 2016, the industry may see a five per cent decline in exports. Total exports of apparel from India stood at around USD 4 billion in April-June 2015.

The domestic garment industry also faces dull market conditions and may see flat growth or a two per cent decline in consumption in the quarter ended June, 2016, Mehta said.

CMAI is organising a mega trade show - 'The National Garment Fair' - on July 13-15 in Mumbai. The event will see participation from 812 brands and nearly 40,000 retailers from across the country are expected to visit the three-day B2B fair, Mehta said.

Commenting on Britain's exit from EU, Mehta said there may not be an immediate fallout of the referendum on the business front, but there could be a period of uncertainty and confusion for some time.

He said there may not be any dramatic impact on India's garment exports to the UK or EU. However, a lot would depend on the exact agreements and treaties to be worked out by both sides, especially on tax implication on movement of goods between the two geographies.

Mehta demanded aggressive follow-up for Free Trade Agreement (FTA) with EU and other countries. Post-Brexit, he felt, there could be a further delay in the signing of the FTA with EU.

The apparel industry also sees huge export potential in Iran, which has a USD 16-billion market and nearly 60 per cent of the demand is met through imports, he added.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, June 28 2016. 20:23 IST
RECOMMENDED FOR YOU