Home / Knowledge / News / Apparel/Garments / 'India's garment exports target a challenge'
'India's garment exports target a challenge'
Jun '16
Achieving the target of $43 billion of apparel exports by 2018 remains a challenge, largely because of a slowdown in demand from Europe and the US, ratings agency Icra said. This, despite the government's latest package for the textile sector which is likely to improve the competitiveness of India's exports.

On Wednesday, the Centre approved a Rs 6,000 crore special package for textiles and apparel sectors to create one crore new jobs in 3 years, attract investments of $11 billion and generate $30 billion in exports.

"These steps will lead to increased competitiveness of India's apparel exports and improve employment generation in the garment sector given its labour intensiveness.

"While the fiscal incentives under the package will improve capacity additions and increase the competitiveness of India's exports, however, achieving the target of $43billion of apparel exports by 2018 appears to be a challenge," Icra Assistant Vice President Anil Gupta said.

According to the agency, the increased benefit of 25 per cent of capital subsidy under amended Technology Upgradation Fund Scheme (TUFS) for new garment units will further reduce the investments requirements for new units by 7.5 per cent.

In addition, the proposal would also benefit new garment units by way of savings of up to 3.7 per cent on labour costs and 1 per cent on total manufacturing cost of apparel due to the government's contribution towards employer's share of EPF contribution, the report said.

India's garment exports grew at 4 per cent in 2015 to $17.1 billion from $16.5 billion in the previous year.

The annual growth for the period 2010 to 2015 stood at 10 per cent, in which the exports increased from $11 billion to $17 billion.

"Demand slowdown from key importing countries in Europe and the US, which is reflected in our estimates of year-on-year de-growth of 4 per cent in global garment trade in CY 2015, can be a major challenge for growth in India's exports," Gupta added.

Icra said that the country's textile exports are highly skewed towards cotton-based sectors whereas the global fibre consumption is largely skewed towards man-made fibre.

Besides, the domestic textile sector suffers from lot of structural inefficiencies, where the garment manufacturing clusters are located away from fabric manufacturing clusters, which in-turn are away from yarn manufacturing and cotton growing clusters, it added.

"Fragmentation of Indian textile industry leads to lot of systemic inefficiencies and competitive disadvantage for the India's textile exports. Unless these issues are addressed, the competitiveness of India's export will always remain under threat," it added. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search