Garment Export Growth Higher At 7.8 Per Cent

The figure for April-August gives more cause for cheer with a growth of 14.38 per cent in dollar terms. The corresponding figure for April-July was 11 per cent.

Although the growth this year is slightly higher than last year's, exporters and the ministry of commerce and textiles are not happy with it. Garments exports to the European Union have fallen by 1.85 per cent in dollar terms. The sharpest decline has been registered in exports to Germany, Italy, Denmark, Sweden and Austria. Exports to Norway have fallen by 5.08% in dollar terms.

Exports to the US have however shown an increase of 13.5 per cent, up from $495.6 million in April-August 1995-96 to $562.6 million in April-August 1996-97.

 

So far, 41.34 per cent or $1963.70 million of the overall garment export target of $4,750 million for 1996-97 has already been achieved. Sources said the target for the year was kept low in view of the depressed international market. Exports to major non-quota countries have gone up from $411.5 million in April-August 1995-96 to $598.8 million in the same period this year.

Last year's performance of the garment industry had set off alarm bells. Exports fell well short of the 1995-96 target of $4.8 billion with total exports to quota countries amounting to $4.46 billion, an achievement rate of 93 per cent. Garment exports to the US, the European Union and Norway had declined in dollar terms.

Sources said the exports last year were hit by high cotton prices and outbreak of the plague in 1994.

Several non-tariff barriers had been erected by some countries to protect their domestic industries. Besides, the international market for garments was generally depressed.

In overall terms, garment exports to quota countries rose by amere 0.11 per cent in dollar terms in 1995-96. The rise was 10.6 per cent in terms of quantity and 6.24 per cent in rupee terms.