Apparel exports decline 17% in April-June on demand blues

India’s apparel exports declined 17 per cent to $1.34 billion in the first quarter of 2018-19 due to a slowdown in demand from developed countries.

The data compiled by the Clothing Manufacturers’ Association of India (CMAI) showed India’s apparel exports at $16.72 billion during 201718, a 4 per cent fall from the previous financial year.

“India’s overall apparel exports is estimated to have declined 17 per cent in the quarter between April and June 2018 due to depressed economic conditions-led lower demand and growth. However, Indian domestic market performed better during the first quarter of the current fiscal than the largest consumption regions like the US (23 per cent share in India’s overall apparel exports), the European Union (38.4 per cent share) and Japan (1.1 per cent share),” said Rahul Mehta, president, CMAI, while announcing the 67th National Garment Fair, India’s largest apparel trade show, scheduled to be held between July 16 and 19.

India’s domestic apparel market is estimated at $67 billion in 2017, growing at a compound annual rate of 10 per cent since 2005.

The market is expected to grow 11-12 per cent annually to $160 billion by 2025.

“The introduction of GST resulted in non-refund of embedded taxes. Consequently, apparel exports for 2017-18 posted a decline. The downturn was expected to continue in 2018-19,” said Premal Udani, managing director, Kaytee Corporation, one of India’s largest kids wear exporters.

Meanwhile, the apparel industry has raised concerns over rising imports from Bangladesh.

“Imports of textiles and apparel reported a jump of 16 per cent to touch the highest ever of $7 billion for 2017-18, compared to $6 billion. All the categories across the value chain saw a drastic rise in imports over the last few years,” said Sanjay Jain, managing director, TT Ltd and chairman, Confederation of Indian Textile Industry.