The Indian rupee was marked at Rs. 61.66 on August 18, 2013 against the US dollar and has declined to Rs. 67.06 on September 04, 2013.
According to the industry representatives and analysts, the sharp decline of rupee would benefit Indian textile and clothing exporters by making the products more competitive in the long run.
Speaking to fibre2fashion, secretary of Confederation of Indian Textile Industry (CITI), Mr. DK Nair said, “The sharp decline of rupee has improved the export earnings of our textiles and garment sector by at least 4 percent because this sector uses negligible imported goods and exports over one third of its production.”
“Though rupee depreciation would always help this sector in the short run, over a period of time, production costs may catch up, diluting the advantage,” he opines.
Agreeing with him, Mr. Harminder Sahni, managing director of Wazir Advisors, says, “The rupee fall is a good news for garment exporters as it makes them earn better margins since it makes the process more competitive as compared to other exporting nations and thus more business may come to India.”
However Mr. Rahul Mehta, president of Clothing Manufacturers Associations of India (CMAI), says, “I do not think the sharp fall in rupee will improve margins very much.”
“Firstly, most exporters would have fully or partially covered their dollars in advance hence higher margins would not really apply. Secondly, even if exporters get the full benefit, it would not be long lasting as most buyers would try to renegotiate the contracted prices. What it will do is to make our products more competitive,” he concludes.
Last month, Government of India raised the textile and garment export target for the ongoing fiscal year 2013-14 to US$ 43 billion, from the earlier US$ 36 billion. In the last fiscal year, India’s overall textile exports stood at US$ 31.71 billion, of which the apparel exports contributed US$ 12.923 billion.
Fibre2fashion News Desk - India
Textiles | On 28th Mar 2017
The Government of India is likely to impose anti-dumping duty on...
Textiles | On 28th Mar 2017
Kraig Biocraft Laboratories, Inc., a leading biotechnology company...
Information Technology | On 28th Mar 2017
Germany based Intex Consulting GmbH has entered into a strategic...
Hindoostan Innovation Centre
‘Modern technical textile is an indispensable tool for science and...
‘The terms eco-friendly and organic are common but everyone perceives them ...
Bolger & O'Hearn
‘The Indian market is interesting and rather persistent in seeking new...
Coating at a fibre level is a practice not usually seen in the...
The Indian market has huge potential in technical textiles, and by far,...
Larry L Kinn
Larry L Kinn, Senior Vice President - Operations Americas of Suominen...
Silvia Venturini Fendi
"Yes, my confidence and positive attitude are my strengths and should be...
Label Ritu Kumar
‘Classics will return’ "There are a lot of people wearing western clothes ...
Gildan Activewear SRL
Gildan Activewear, a manufacturer and marketer of branded clothing and...