Releasing the export data for the month of August 2012 for the apparel exports in India, Dr. A Sakthivel, Chairman AEPC, stated that, “Apparel exports were to the tune of USD 989 million in August 2012-13 with a decline of 7.2 per cent against the corresponding month of last financial year.
In rupee terms, the exports have increased by 13.9 per cent in August 2012-13 over the same month of previous FY”. Export in dollar terms for first five months of the FY 2012-13 has declined by 12.16 per cent over the same period of previous FY and reached to USD 5260 million however, in rupee terms exports increased by 7.3 per cent compared to same period of last FY. In April-August 2012-13 in rupee terms apparel export of India was to the tune of Rs. 28761 crore compared to Rs. 26800 crore in April-August 2011-12, he added.
In the FY 2011-12 exports in dollar terms increased by 17.9 per cent from previous FY and totaled USD 13699 million in April-March 2011-12.
Dr. Sakthivel in a press statement made today informed that, “The global financial crisis emanating inter-alia from sub-prime mortgages and unregulated credit default swaps is behind us. However, the sovereign debt crisis in the euro-zone has followed immediately thereafter. The weak recovery in EU and USA has reduced the purchasing power of the people in these markets- leading to the shortfall in the overall demand. I will request Government to soon ink the India-EU FTA because EU is our biggest market and Textiles Sector overall will benefit much more.”
“I welcome the government move to speed up the reform process. However, raising cost of fuel and inflation thereby is hurting the exports. To reduce the vulnerabilities to the external shocks Government needs to build fiscal space, reduce the short term debt exposure and creating the buffers that allows them to react in a resiliently manner, he added.”
Further, Dr. Sakthivel expressed his concern and said, “The biggest worry is appreciation of rupee to the extent of 10% and also in high cost fund.”