Home / Knowledge / News / Apparel/Garments / Revival in Indian apparel industry being dented by fresh crisis
Revival in Indian apparel industry being dented by fresh crisis
25
Feb '11
There is some reason for Indian apparel manufacturers to cheer up after a long time. The Indian apparel sector, which had been reeling under pressure since recent past primarily due to rising cotton yarn prices, has witnessed a positive beginning in December 2010.

Almost after seven months of continuous decline in apparel exports i.e. from May 2010 to November 2010, the apparel industry has seen a sign of revival in the month of December 2010. The same is being perceived by the industry as the result of the recent intervention by the Government, whereby it put a 720-million-kg cap on exports of cotton yarn for the FY 2010-11 to facilitate the steady supply of cotton yarn to the troubled domestic apparel manufacturers who were suffering at the want of cotton yarn to meet their production commitments. The industry believes that the Government initiative has helped smoothen the upwardly moving cotton yarn prices to some extent.

Apparel Export Promotion Council (AEPC), the apex body of apparel exporters in India, has recently compiled a data that reflects an increase in exports for the month of December 2010 by 40 per cent from the previous month viz. November 2010. For the first time in December 2010, apparel exports touched USD 1 billion mark. The data shows that in the month of November 2010, apparel exports were clocked at USD 7.10 million. For the three months ended on December 31, 2010, the apparel industry posted exports of USD 2,438 million, as against exports of USD 2,398 million for the corresponding year of FY 2009-10.

An important reason for this increase has been the growth posted in AEPC's largest exporting partner country, the US markets. Apparel exports from India to the US have registered a remarkable growth of 10 per cent during the period January 2010 to November 2010, against the corresponding period of January 2009 to November 2009. Apparel exports from India to US markets during January to November 2010 stood at USD 2903 million, as against exports of USD 2636.90 million during the same period of 2009.

Outlook for FY 2011:
AEPC is cautiously optimistic to reach an export figure of USD 11 billion for the current financial year. For the next fiscal, AEPC forecasts about 10 per cent growth; subject to raw material stability.

The CEPA Agreement with Japan to boost apparel and knitwear industry:

The signing of Comprehensive Economic Partnership Agreement (CEPA) with Japan is one of the largest agreements ever signed by India with US$ 5 trillion GDP of Japan.

As per the Agreement, about 94 per cent of the tariffs between Japan and India will be eliminated within 10 years (about 97 per cent by Japan and about 90 per cent by India on trade value basis). Said Mr Udani, “With this agreement, all garment items falling under Chapter 61 & 62 (knit and woven garments) have become duty free with immediate effect. The effective rate of duty, which is around 11 per cent, shall now not to be paid by the garment exporters of India. There would be a growth of nearly 50 per cent in India's garment exports to Japan, as a result of this agreement.”

Must ReadView All

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Interviews View All

Nuno Venda
ROQ

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

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Lynda Kelly
Suominen Corporation

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

Mohammad Hassan
Biax Fiberfilm

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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