Apparel export dips over 6 per cent in May.

NEW DELHI: After a positive trend in April India's apparel export, impacted by events in Europe, dropped by an annual 6.8 per cent to USD 820 million in May.

The slump in garment export was in contrast to about 35 per cent growth in the country's total outward consignments.

"We are getting less orders from the European as well as the US markets," Apparel Export Promotion Council (AEPC) Chairman Premal Udani said.

The Europe accounts for over 30 per cent of the country's total garment export.

A sharp erosion in the euro value has also reduced the margins for exporters. The euro has depreciated by about 17.5 per cent against the rupee since last November.

The spiraling debt crisis in many parts of Europe has threatened to derail the fragile global economic recovery. Even though, countries such as Greece, Portugal and Spain have embarked on widespread austerity measures, concerns continue to remain about the health of European economy.

To reduce dependence on traditional markets like the US and Europe, apparel exporters are exploring new markets in Japan, West Asia, Africa and Australia.

The Textiles Ministry has set a USD 12 billion apparel export target for the current fiscal.

The garment export, which saw a beating since October 2008, declined marginally by 2.6 per cent to USD 10.64 billion in 2009-10 compared to the previous fiscal.

The apparel industry provides employment to about seven million people, out of which almost half of them are engaged in the export sector.

Source : The Economics Times