India’s readymade garment (RMG) exports increased by 29.45 per cent in value terms in the month of September 2017.
The country registered exports worth US $ 1.662 billion during the reporting month as against US $ 1.284 billion in September 2016.
Woven exports, during the month, contributed 52 per cent to overall exports whereas the share of knitwear was 48 per cent.
The export surge was 31.65 per cent at the start of the fiscal in April. However, the exports started shrinking since then in the three consecutive months. In June it declined 1.27%), July 11.72% and in August noted a marginal surge of 0.67%.
In the last three months when the global demand was increasing, apparel exporters could not cater to it due to the GST-related confusion. Now, when things are clearer, the piled up inventories are being sent off to the buyers.
Furthermore, the exporters are hopeful to surpass the last year’s exports figures (US $ 17.36 billion) in the upcoming Christmas season, which has always been fruitful for them.
However, the Indian garment industry is still facing some challenges which will give tough competition to the exporters’ growth projection. The biggest challenge is the strengthening rupee against dollar.
“Rising Rupee is not the only worry. Unless India signs FTA (Free Trade Agreement) with the European Union, we will be beaten by the countries who already have this privilege,” mentioned a leading Indian garment exporter.