Fluctuation in Currency
The apparel export industry was also affected as the rupee went stronger against dollar. The strength of the Indian rupee (INR) versus USD as reflected in the 3-month USD-INR futures trading at around 65.19 constrained the price competitiveness of the Indian textile exporters. Over 70% of India’s textile and apparel exports are dollar denominated. Strong rupee and depreciation of currencies of competing countries like China, Bangladesh and Vietnam caused slowing of exports in 2017. Chinese Yuan depreciated by 13%, Bangladesh Taka by 6% and Vietnam Dong by 7% whereas India’s rupee hardened by almost 6% over the last 3-6 months against all major currencies.