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Rupee depreciation boosts India’s apparel exports |
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The depreciation of the Indian currency has led to an increase in exports of clothing items from India, which grew to US$ 13 billion during 2011-12, according to estimates of the Apparel Export Promotion Council (AEPC).
In fiscal year 2010-11, India exported US$ 11.4 billion worth of garments, registering a year-on-year rise of 6 percent. In comparison, the estimated apparel export growth for 2011-12 shows a rise of 14 percent year-on-year.
The rise in garment exports has been mainly owing to the depreciation of the rupee, however, the volume of exports remained the same as previous fiscal year, AEPC Chairman A Sakthivel said.
The value of Indian currency depreciated from around Rs. 45 per one US dollar in April 2011 to more than Rs. 50 per one US dollar in March 2012.
Apparel exports constituted less than half of the total textiles and garment sector exports from India, as the country’s total textiles and apparel exports are expected to cross the US$ 30 billion mark in 2011-12, according to the Confederation of Indian Textile Industry (CITI).
In 2010-11, India exported textiles and garments worth US$ 26.8 billion and had set a target of US$ 33 billion for 2011-12.
In spite of the continuing eurozone crisis, which resulted in lower demand from European countries, growing demand from the US and other non-traditional markets contributed to an increase in India’s textiles and clothing item exports.
Mr. DK Nair, Secretary General of CITI, told fibre2fashion, “The European crisis had a very significant adverse effect, as about one-third of our total textile and apparel exports are destined to West Europe. However, the demand from other countries helped us surpass last year’s export figures.”
Naming the major export destinations for India's textiles and apparels, he says, “For Indian apparels, the major destinations are West Europe and North America. For textiles (especially yarn), in addition to these two, Bangladesh, Korea, Indonesia and China are also our major markets.”
Source : fibre2fashion.com
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