Signs of US revival cheer Indian apparel exporters

The Indian apparel export community, which was

under pressure, till recently due to sluggish economy in the western countries like the US and Europe that are major importing countries now have reasons to cheer. The recent fall of the rupee against the dollar and improving US economy has brought smiles to the faces of India's apparel exporters.

India's apparel exports fell 5.76 percent to 12.92 billion dollars (Rs 7,46,000 crores) in 2012-13 due to the slowdown in Europe and the US, which together account for more than 65 percent of India's garment exports. Exporters were already getting good number of orders and the recent fall in rupee has further improved their confidence as their goods are now cheaper in dollar terms in the international markets.

But according to the Federation of Indian Export Organisations(FIEO) president Rafique Ahmed, while the rupee devaluation would help garment exporters increase shipments, they should also keep in mind that benefit of higher margins may not be possible because importers would demand discounts. But former FIEO chief Ramu S Deora believes the government should not intervene and allow market forces to determine the value of the rupee.