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Exports of clothing plunges in Jan-June 2009
Aug '09
The Ministry of Commerce released latest statistics pertaining to exports from the textile, apparel and footwear sector. According to the reports shipments in the first six months of 2009, fell 18 percent year-on-year to US $1.27 billion.

Shipments to its biggest customer; US declined by 30 percent, to Canada by 13 percent and to the European Union was down by 5 percent.

Commenting on the figures, the Trade Preferences Systems Department said that a rebound was expected in the second half of 2009, but would not able to put a value to that figure, since economic conditions are yet to improve.

Experts, though state that things have improved since the second quarter of the year and add that negative export growth is narrowing with each passing month since April. Negative growth in the first quarter recorded 26.41 percent.

In the month of March alone, exports of textiles and apparels had fallen by 38 percent year-on-year, to $163.4 million. Experts aver that there are many factors responsible for the slowdown in exports from the country.

They point out to the number of strikes which have taken place in the garment factories, and say that this is the main reason keeping buyers away, other than the economic crisis. High cost of production is also considered one of the reasons.

Fibre2fashion News Desk - India

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