India could slip to the 9th position in readymade garment exports behind
Myanmar and Ethiopia if the government failed to provide a helping hand to the
exporters about fifty per cent of them based in Western Tamil Nadu town of
From being second largest exporters in the world just behind China 12 years
ago India has now fallen to the sixth position in exports behind Cambodia,
Vietnam, Bangladesh and Sri Lanka an official of the Tirupur exporters association
The exporters are of the view that the cut in incentives will reduce the
price competitiveness an important element in global competition. The threat of
withdrawal of incentives has forced the exporters to go slow on orders.
The textile hub Tirupur accounted for 45 per cent of total exports of
readymade garments during the last fiscal and exports touched a figure of Rs
The competitors Vietnam, Cambodia and Bangladesh have free trade agreements
with European Union, a major destination for the Indian exporters. The
exporters are currently looking for more volume of trade from United States and
non traditional markets like Eastern Europe.
The exporters resented the Commerce Ministry's latest proposal to slash
export incentives including the cutting down the duty draw back scheme from
eleven to six per cent. The move to come into force next month along with the
appreciation of the rupee would sound death knell to exporters.
While the exporters from Tirupur have set a target of Rs 35,000 crores
during the current financial year, things are not going in the right lines.
Fixing GST for job works for apparels at 18 per cent had seriously affected the
industry in July when the exports were down. August September being the
vacation period in US and continent, it will be lean period for garment
Now we are faced with the prospect of reduction in duty draw back. These
are not healthy signs for the growth of the industry association sources said.
Last year we were affected by the fall in value of Pound following Brexit.
Export growth had fallen substantially over the previous year by around three