Home / Knowledge / News / Apparel/Garments / Depreciating rupee does not enthuse apparel exporters
Depreciating rupee does not enthuse apparel exporters
07
Mar '09
The Bangladesh garment industry was able to pip India in clothing exports to the US markets by jumping to fifth place and in the process pushing India to the sixth place. This has come about due to the cost competitive rates quoted by Bangladeshi exporter's vis-à-vis Indian manufacturers.

The sliding rupee which also has depreciated to historic highs should have in better times been welcomed by exporters of all hues with smiles. But this time around, quoting competitive prices, which has to be less than those quoted by its competitor countries, is taking the shine off the depreciating rupee.

Global retailers have latched on to a new system of placing orders. They are now resorting to a system, akin to global tendering, which is taking its toll on the Indian apparel exporter. Orders are gained or lost by very thin margins and unless the manufacturer has not been able to improve his overall cost competitiveness, the orders end up going to neighbouring countries.

The only objective as on date adopted by each and every garment exporter, worth his weight is to ensure that ongoing orders do not slip out of his hand and get redirected to other countries, on the premises that he may not be able to regain them for good. Under these conditions they are quoting rates, which may even mean incurring losses on each and every order.

Though April-August 2008 figures delivered promising growth, clothing exports started registering negative rates, with the unveiling of the economic turmoil in September last year. Experts fear the cost competitiveness of Bangladesh garment industry is responsible for orders going their way, rather than to Indian apparel manufacturers.

Other than quoting rates lower than those cited by their competitors in other countries, the garment exporters are resorting to other ways to retain their existing clients. Some of them are holding ready stocks, so that there is no delay in dispatching orders, but this only adds to the troubles of the already financially strained Indian exporter.

Fibre2fashion News Desk - India


Must ReadView All

India’s garment imports from Bangladesh up 56% post-GST

Apparel/Garments | On 12th Dec 2017

India’s garment imports from Bangladesh up 56% post-GST

India has imported $87.4 million worth of readymade garments from...

Coats acquires yarn manufacturer Patrick Yarn Mill

Textiles | On 12th Dec 2017

Coats acquires yarn manufacturer Patrick Yarn Mill

Coats, the world’s leading industrial thread manufacturer, has...

Trade & consumers want MDR free digital payments: CAIT

Apparel/Garments | On 12th Dec 2017

Trade & consumers want MDR free digital payments: CAIT

Transaction charges like the merchant discount rate (MDR) applicable...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Top executives
Textile & apparel bodies

The decision is transformational

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Urmil Arya

Sushila International, a well established textile organisation established ...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Urs Stalder
Sanitized AG

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

Eamonn Tighe
Nature Works LLC

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

Sonam & Paras Modi
SVA

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Mike Hoffman
Gildan Activewear SRL

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


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