Home / Knowledge / News / Apparel/Garments / EU countries likely to cut apparel export orders
EU countries likely to cut apparel export orders
Jun '10
The sovereign debt crisis in the euro zone has put garment exporters in doubt who are getting ready to grab fresh orders from major Western markets. It has been anticipated that 27 countries in the European Union (EU), where around 40 percent of the Indian garment exports are shipped, will reduce their orders for the quarter.

Depreciation of Euro hit profits of the exporters, as this depreciation has made shipments to the EU more expensive. In such situations, pricing the products to fetch orders and maintaining margins are the major challenges for exporters, said analysts.

As per an official, any currency depreciation directly hits the bottom line, so around 15 percent depreciation in Euro would hit exporters' bottom line by 10 percent. The crisis in Europe definitely hit Indian exports, as Europe is a biggest market for Indian export items and orders from this market are imperative for Indian businesses.

Due to such situations, the export orders from European markets may shift to bigger nations, who are able to control their currency as per the situation, said an expert. Since 2008, the garment industry of India has been in tight corners, as appreciation in rupee affected the earnings of the exporters.

In the year 2009-10, exports of India fell down to Rs 459.71 billion that is by 9 percent. US accounts for almost 33 percent of the Indian clothing exports. Overall retail sales of the US had gone up in the month of March by 2.1 percent and merely by 0.4 percent in April. However, sales in 27 countries of EU slipped by 0.6 percent in the month of February and similar were the case in the month of March.

Now, the situation in the US is quite better, as its retail market has started witnessing improvement. Exporters in the industry are expecting that, they will again start receiving orders, since they have raw materials at better rates compared to their competitors.

Fibre2Fashion News Desk - India

Must ReadView All

'Requirement of polyester filament yarn is increasing'

Textiles | On 19th Jun 2018

'Requirement of polyester filament yarn is increasing'

The requirement of polyester filament yarn (PFY) is increasing as it...

Courtesy: SAC

Textiles | On 19th Jun 2018

SAC to release pilot of Higg Facility Social Labour Module

The Sustainable Apparel Coalition (SAC) will release this year a...

Courtesy: Tim Savage from Pexels

Textiles | On 19th Jun 2018

Da Lat begins construction of $50mn wool yarn factory

Da Lat Worsted Spinning Limited Company has begun construction of a...

Interviews View All

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Angelina Francesca Cheang

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

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Pranav Mishra

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

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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


Leave your Comments

June 2018

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

news category

Related Categories:

Advanced Search