MUMBAI: Even as the demand for key textile inputs such as yarn and fabric are expected to revive, apparel exports would lose momentum in the current financial year as demand from the US and Europe, the biggest markets, is likely to remain weak.
Though the rupee is expected to depreciate by 10.5% in 2012-13, exporters are unlikely to reap the full benefits as buyers have started demanding discounts. "In spite of fall in prices, we expect (apparel) export volumes to grow by only 3.5% as demand from Europe and the US is expected to remain weak," according to the Centre for Monitoring Indian Economy (CMIE).
And there is no cheer on the value front either. Apparel exports, which are estimated to have grown 24.8% in 2011-12 in value terms largely on account of better realizations, are likely to decline 0.3% in 2012-13 due to the drop in input costs. Export realizations rose last fiscal despite a sluggish growth in volumes due to spike in prices of inputs such as yarn and fabric and a weak rupee.
Source : timesofindia.indiatimes.com