India’s Apparel Exports Slumped by 26% in Sep
According to data released by Directorate General of
Commercial Intelligence and Statistics (DGCI&S),
Kolkata, India’s garment exports fall by 26% in September
due to higher input cost and lack of favorable trade
agreements for major global markets.
Exports of readymade garments of India declined sharply in
September 2018 worth Rs 7968cr compared to Rs 10705cr in
The decline is a shock to apparel exporters of India,
particularly from Punjab, Haryana and Uttar Pradesh (UP),
who blame it on high input costs. Production costs in the
northern hubs are high compared to other competing
According to experts, manufacturers based in the northern
states are not even able to compete with Tirupur cluster in
Tamil Nadu because of high labor, transportation and
Major textile hubs in northern India are in Ludhiana,
Jalandhar, Panipat, Gurugram, and Noida. Textile clusters in
the three northern states employ over 2 million workers.
Around 200 textile exporters are based out of Punjab and
Harish Dua, Managing Director of Ludhiana-based KG Exports
said that the Indian garment exporters are facing stiff
competition from countries such as Bangladesh, Sri Lanka,
Vietnam, Cambodia and Ethiopia and so competition in the
international market has become very severe. Neighboring
competitors like Bangladesh, Pakistan, Sri Lanka, and
Vietnam have duty advantage of 9.6% in major European
markets compared to the Indian manufacturers because India
does not have the Free Trade Agreement (FTA) with the
European Union (EU), therefore, our products get out priced
and we lose the market.
Overall, India exported readymade garments worth Rs
35860.16cr in April-July 2018, and during April-July 2017,
India’s apparel exports were to the tune of Rs 39857cr.