Home / Knowledge / News / Apparel/Garments / Rupee slump fails to help Indian apparel exporters
Rupee slump fails to help Indian apparel exporters
Dec '11
The depreciation of Indian currency against the US dollar has failed to fetch big orders for the country's apparel exporters, mainly due to fears of a recession in Western countries next year.

The US and Europe account for over 80 percent of India's US$ 11 billion garment exports and shoppers in these countries are currently decreasing their spending on clothes, owing to the financial crisis in those countries.

Normally, a decline in currency helps exporters as it decreases the price of goods in terms of their dollar value. But, this time round Indian exporters have not gained as western buyers have decreased their procurement, which is estimated to have come down by 15 percent in the last two months.

“Definitely, the market in Europe being very weak is one big reason for Indian apparel exporters failing to gain in spite of the depreciating rupee,” Mr. Premal Udani, Chairman of Apparel Export Promotion Council (APEC), the official body of apparel exporters told fibre2fashion.

“Another reason is that there is no meaningful reform taking place in India to enable apparel exporters to compete,” he quips.

“Rupee depreciation is surely an advantage, but the buyer himself is getting aware that the dollar is getting stronger, so the buyer also expects us to sell a product worth US$ 5.00 at around US$ 4.80 or so. It, however, provides a cushion to negotiate which we lacked earlier,” says Mr. Praveen Nayyar, Managing Director of Dimple Creations, a New Delhi based manufacturer and exporter of woven and knitted garments.

Looking for opportunities, he adds, “While the business from Western countries is down, we stand a much better chance of exporting to the reverse countries like Australia, South Africa and countries of South America, where the delivery timings and seasons are reversed. Since these countries also deal in dollars, there are chances of giving them better prices and getting business.”

Commenting on the expected decline in apparel exports, Mr. Nayyar says, “The peak shipping season is up to February 15th because the spring would go till end of January and then summer starts. The months from June to September were very bad for exporters. So, even if the exports are good now, the average would be quite less. Annually, we may have a deficit of about 10-15 percent.”

The AEPC Chairman predicts that the coming quarter will be more or less the same for apparel exporters, but adds, “There are many steps that can be taken to help exporters. Interest subvention has to be across the board and drawback needs to be liberalized. Moreover, removing excise duty on garments would enable them to cater more to domestic market and make good for decrease in exports.”

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th May 2017

Huntsman and Clariant to have merger of equals

Huntsman Corporation and Clariant have announced that their boards of ...

Courtesy: CBRE

Apparel/Garments | On 25th May 2017

European cities preferred for retailer expansion: CBRE

European cities were the preferred new destination for international...

Apparel/Garments | On 25th May 2017

Guess records $458.6 million revenue for Q1 2018

For the first quarter of fiscal 2018, the net revenue of American...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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


news category

Related Categories:
May 2017

May 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search