The value of clothing exports from India is likely to touch $20 billion during the ongoing fiscal 2016-17, due to push from the government through the Rs 6,000 crore special package for textiles and apparel sector announced last week, according to the Clothing Manufacturers Association of India (CMAI).
The package is aimed at creating one crore new jobs over a three-year period and attract $11 billion new investments, and increase garment exports to $30 billion.
“India's garment export value, estimated at $16.80 billion now, is expected to reach $20 billion during the current fiscal. The special package announced by the government will not only help in attracting large investments but also enhance production capacity,” CMAI president Rahul Mehta told mediapersons in Mumbai.
The inclusion of state-level taxes in the computation of duty drawback will provide a major relief to the exporting segment, Mehta said at the press conference called to announce the CMAI's 63rd National Garment Fair to be held from July 13-15, 2016.
Talking about the first quarter ending June 30, 2016, Mehta said the industry may see a five per cent decline in exports due to the prevailing downturn in the global economy which continues to adversely impact India's garment industry.
He said the domestic garment industry also faces dull market conditions and may see flat growth or a two per cent decline in consumption in the quarter ended June, 2016.
Commenting on Britain's exit from EU, Mehta said there may not be immediate fallout of the referendum on the business front, but there could be a period of uncertainty and confusion for some time.
The apparel industry also sees huge export potential in Iran, which has a $16 billion market and nearly 60 per cent of the demand is met through imports, he added.
The three-day National Garment Fair will see participation from 812 brands and nearly 40,000 retailers from across the country
are expected to visit the fair, Mehta said.
The showcase at the fair will include all kinds of fashionable and most trendy collections of garments and outfits from brand apparel companies. (RKS)