Garments Exports Drop By About 3 Per Cent in November.

New Delhi, (PTI) After registering positive growth for three months in a row, India''s apparel exports again slipped about three per cent to USD 716 million in November year-on-year, due to less demand from the West and rising input cost.

In November 2009, garments exports stood at USD 737 million, according to Apparel Export Promotion Council (AEPC) data.

"The demand is yet to pick up in western markets like the US and Europe," Apparel Export Promotion Council (AEPC) Secretary General Vimal Kirti Singh said, adding that the rising prices of cotton yarn have also impacted productivity levels.

The US and Europe together account for about 70 per cent of the country''s total garments exports.

Higher prices of cotton yarn, which rose up to 40 per cent in the past three months, have led to an increase in the fabric cost, Singh said.

To cool down increasing prices of yarn in the domestic market, the government has capped the cotton yarn exports to 720 million kg for the current fiscal.

India''s garments exports were on the decline till July this fiscal. However, thereafter they exhibited positive growth till October.

The garment industry provides employment to about 7 million people in the country, out of which almost half are engaged in the export sector.

Source : in.finance.yahoo.com