Garment export this fiscal year is likely to miss its target so much so that it may be even lower than last year's record of US $9.4 billion.
Experts believe that there may be a deficit of around $1 billion because of the ongoing appreciation of the rupee. Although, last year the industry saw a growth of 10-15 percent, this year, apparel exports may stay grounded at $8.5 billion.
The export industry is hoping to receive government sops, improve productivity and a revised price line from importers to overcome the disastrous situation. However, it is strongly believed that the only escape from this turmoil is strengthening of the Indian rupee.
Some renowned export companies opine that the currency may probably take a downward trend starting from March. Besides, they are also optimistic that in spite of products having higher prices compared to the Far East countries, importers will not overlook India.
Besides, tax on rentals has also had its toll on the apparel industry since nearly 80 percent of the industry is rental-based.