High production cost affects Indian apparel exports

03 Nov '12

2 min read

The increase in manufacturing costs has taken a toll on Indian apparel exports, according to traders.

They say the increase in production cost in the Indian apparel industry has led to a reduced demand for Indian garments in overseas markets and it has opened up new clothing exports opportunities for countries like Bangladesh, Indonesia, Vietnam, Turkey and Mexico.

According to the statistics released by the Apparel Export Promotion Council (AEPC), Indian apparel exports fell by 7.2 percent year-on-year in the month of August and in April-August 2012 period, apparel exports declined by 12.6 percent year-on-year.

Mr. Devendra Baid, CEO of Welfit Garments, told fibre2fashion, “In India, the manufacturing cost of apparels is very high and everyone is looking out for cheaper rates. As compared to India, much cheaper garments are available in countries like Bangladesh and this has affected the Indian apparel sector.”

“This year, Welfit Garments did not receive any orders for Christmas from the overseas market” he informs.

Kolkata-based Welfit Garments is one of the leading manufacturer and exporter of readymade garments for children, which specializes in school uniforms, infant wear and casual wear.

Echoing similar view, Mr. Anil Ahuja, managing director of Ahuja Web Private Ltd, an apparel company engaged in manufacturing and exporting of garments for women and children, says, “Indian apparel exports are suffering due to high production cost.”

“Moreover, the Central Government policies are not in favour of exports at the moment and this is also a reason for our prices being higher compared to other countries,” he adds.

Fibre2fashion News Desk - India

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