Apparel exports drop for third month in a row.

NEW DELHI: India's apparel exports declined for the third successive month in July, showing a 22.5 per cent annual drop in contrast to recovery in the country's overall exports which went up by 13.2 per cent in the same month.

The garments exports fell to USD 816 million in July on lesser demand from the US and European markets, according to the Apparel Export Promotion Council (AEPC).

"The demand from western markets like the US and Europe has still not revived as there is a slow recovery in these economies," AEPC Chairman Premal Udani said.

The US and EU account for about 80 per cent of the country's total apparel exports, which aggregated to USD 10.64 billion in 2009-10.

During April-July 2010-11, apparel exports declined by annual eight per cent to USD 3.46 billion.

Thanks to recovery in gems and jewellery, the country's overall exports went up by 13.2 per cent in July to USD 16.24 billion.

During April-July, overseas shipments aggregated at USD 68.63 billion, up 30.1 per cent over the same period last year.

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

While the government announced extension of the incentives under the Market Linked Focus Product Scheme (MLFPS) to EU till March 31, 2011, the industry wanted that the relief be also provided for the shipments to the US as well.

Under the MLFPS, the exporters get two per cent incentive on value of exports.

Source : economictimes.indiatimes.com