Ready made garments among top Indian exports

Ready made garments (RMG) were among India’s leading

export sectors during the last financial year, according to preliminary figures released by the Ministry of Commerce. During the fiscal year that runs from April 2011 to March 2012, shipments of ready-made garments, yarns and fabrics rose 18 per cent to $13.7 billion (Rs 71,692 crores).

Cotton yarn and fabric made-ups climbed 17.4 per cent year-on-year to $7.2 billion (Rs 37,677 crores, exports of man-made yarns and fabrics were up 18.5 per cent at $5.1 billion (Rs 26,688), and leather rose 22.5 per cent to $4.2billion (Rs 21,978 crores). Observers expect overall textile and apparel exports for the year to be around $30 billion (Rs 1,56,990 crores), up from $27 billion (Rs 141,291 crores) a year ago, after softer demand in Europe was offset by a weaker rupee and strong orders from the US.

On the other hand, India is also facing tough competition from competitors in Vietnam, Indonesia and Bangladesh. While China’s hold over the US and the EU markets is loosening, India, which was widely seen as in the best position to capitalize on China’s lost market share, is increasingly being relegated to the position of a supplier of intermediate products to other successful garment exporting countries. Post slowdown, Indian exporters began exploring newer destinations and the neighboring countries seem to have taken advantage of the situation.