Ap­parel Ex­ports Drop In De­cem­ber By 8%

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Ap­parel ex­ports dropped by 0.3% be­tween April and Dec. 2017 and 8% in De­cem­ber alone

Im­ports of yarn, fab­rics and made-up ar­ti­cles dur­ing De­cem­ber last year rose 20% com­pared with De­cem­ber 2016, ac­cord­ing to data re­leased by the Min­istry of Com­merce and In­dus­try. Whereas com­peti­tor like Bangladesh showed that In­dia im­ported gar­ments worth $111.3 mil­lion dur­ing July-de­cem­ber 2017 from Bangladesh, which was 66 % higher as against the same pe­riod of the pre­vi­ous year. Im­ports of knit­ted ap­parel from Bangladesh were worth $20.6 mil­lion in July-de­cem­ber 2016 and rose to $36.5 mil­lion be­tween July-de­cem­ber last year.

A lead­ing gar­ment ex­porter here said one of the rea­sons for the de­cline in ex­ports is re­vi­sion of duty draw­back rates. “Once an in­ter­na­tional buyer en­ters into a con­tract with an In­dian sup­plier, the rates are fixed and might only go down in the fu­ture. “But, cot­ton prices and yarn prices are go­ing up in the do­mes­tic mar­ket. And, the gov­ern­ment has re­duced the duty draw­back rates. Af­ter GST, we do not know yet what re­fund we will get on du­ties paid on ex­ports.

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