Apparel exports fall despite strong dollar

Despite the strong position of dollar against Indian rupee,

apparel exports from India to the US slumped 10.6 per cent in 2012 (till July) to $1.94 billion (Rs 10,167 crores), according to the recent trade data. The fall is the sharpest among major exporters of textiles and apparel products.

While apparel exports from China and Bangladesh, major competitors to Indian textile firms, was almost flat, a clear indication of the tough market conditions, exports from Vietnam recorded a 9 per cent growth. Apparel exports from China and Bangladesh stood at $15.25 billion (Rs 7,99,252 crores) and $2.74 billion (Rs 14,360 crores) respectively during the current year, data with the Office of Textiles and Apparel (OTEXA), US Department of Commerce showed.

The rupee, which lost nearly 16.3 per cent in a little over three months between March and June, breached even the 57-mark against the dollar. The US accounts for about a third of apparel exports from the country, which is estimated at around $13.5 billion (Rs 7,06,185 crores) during the last financial year.

According to industry players, despite the increase in costs, they have not been able to increase prices since competitors like China and Bangladesh quote lower rates. Moreover, the demand for garments in the US still remains weak owing to the slow economy. While China exported apparel worth a whopping $41 billion (Rs 21,44,710 crores) for the year ending July, a 1.8 per cent jump, shipments from Bangladesh topped $4.65 billion (Rs 24,324 crores), OTEXA data showed. Apparel exports from India stood at $3.08 billion (Rs 16,142 crores) during the period, a nearly 8 per cent decline.