Slowdown affects Gurgaon units

The signals of another global slowdown are being reflected with slow or no orders from Europe

and America and Indian exporters are a worried lot. The impact is already visible this month, with a 30 per cent dip in export revenues earned by units in Gurgaon. The Gurgaon garment sector alone employs more than six lakh people and enjoys a major share of export revenue earned by the garment industry. Declining international orders has been cited as the major reason for slow business. Indeed it has not gone down well for the exporters since winter is the season when business usually booms.

Animesh Saxena, Executive Member, Apparel Exporters and Manufacturers Association (AEMA) says that the two biggest markets for Indian garments -- the US and Europe -- have scaled down purchases. As a result, most garment manufacturing units in Udyog Vihar, Manesar and Khandsa have scaled down their production capacity by almost 40 per cent. With industry players hoping the situation will be under control, long-term outcome of the current downturn is yet to be seen. Exporters, adapting a wait and watch policy plan to draw out an action plan if the situation continues for another two to three weeks. After all even they have to sell the inventory and make profits.

The Indian apparel industry, second largest employer in the country after agriculture, is also pinning their hopes on support from state governments. The Haryana government for instance withdrew all its incentives for the sector and add to it, interest rates have risen this year from 10 to 12 per cent.