Home / Knowledge / News / Textiles / Indian textile exporters ponder benefits of rupee fall
Indian textile exporters ponder benefits of rupee fall
04
Sep '13
While Indian rupee has become all-time low against the US dollar, the textile and apparel exporters of the country are pondering on benefits of sharp fall in rupee on the industry.

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

Must ReadView All

Textiles | On 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Kraig Laboratories

Textiles | On 28th Mar 2017

Kraig gets certificate for silk production in Vietnam

Kraig Biocraft Laboratories, Inc., a leading biotechnology company...

Information Technology | On 28th Mar 2017

Intex Consulting signs partnership with Kawan Era Baru

Germany based Intex Consulting GmbH has entered into a strategic...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Silvia Venturini Fendi
Fendi s.r.l

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search