RMG exports surge with US revival

A fresh pick-up in supply orders from the US is helping reverse a 7.3 percent slide

in India’s garment exports between April and December last year, the weakest performance since the 2008-09 global financial crisis, according to official and industry sources. Recently, India’s RMG exports to the US were witnessing downward trend owing to economic slowdown and Indian exporters were increasingly scouting for newer export destinations like South America, Japan to salvage the situation.

Though the US has been a key market for some time now, its role has significantly increased after Indian garment industry’s top market, Europe, faced a sovereign debt crisis, crimping demand. Now, apart from helping the country’s overall export figures demand will also aid in achieving the investment target of Rs 151,000 crores in the textile sector during the 12th Plan period through 2016-17, under the Technology Upgradation Fund Scheme (TUFS). The government plans to offer subsidy worth Rs 11,952 crores to meet the investment target under TUFS during the current Plan period.

Total textile and clothing exports dropped to 22 billion dollars (Rs 1,20,533 crores) between April and December, down 7.3 per cent from a year before, reveals the latest provisional data. However, a sharp depreciation of the domestic currency drove up export value in rupee term by 6.9 per cent to Rs 1,19,855crores. By contrast, the country’s overall exports dropped by 5.5 per cent during the April-December period, although in the rupee term, the shipments grew roughly 8.1 per cent.