Good news from the export front. The ready made
garment exports of the country have risen by 25 per cent in rupee terms and
thirty per cent in US Dollar terms during last month (September) compared to
corresponding month last year. The exports witnessed a steady declining curve
during the last three months in a row but got revived in September.
As the goverment's policies towards this sector
continues to be hostile this export performance is not sustainable in the
coming months according to sources in the exporting community
The ready made garment exports rose to Rs 10,707 crore in September 2017 from Rs
8,583.55 crore in the same month a year ago. In dollar terms, these figures
were $1.662 billion as against $1.284 billion. Of the total RMG exports, 52 per
cent is woven and 48 per cent is knitwear.
The sector started the financial year in April with 27.60 per cent growth in
rupee terms and a 31.65 per cent increase in dollar terms. But in the following
month growth (in rupee terms) was hardly 3.84 per cent.
Exporters say that garment exports this year will
surpass last year’s total exports of 17.358 billion US dollars as, generally,
exports tend to grow in the second half.
January to March are the crucial months for
exports. Around 30-40 per cent of exports have taken place during these three
months in the last few years.
Exporters attributed the increase in sales mainly
to the upcoming Christmas season in Western markets. The other factor is that
inventories piled up due to the GST are now being cleared. a spokesman of the
Tirupur Exporters’ Association said that people are now becoming used to the
GST system. In the last three months while global demand was increasing,
exporters could not cater to it due to tax-related confusion. “Now we don’t
have a choice, but the GST makes our products costlier compared to other
countries,” d . The September numbers are not sustainable in the current
Unless India signs an FTA with European countries
exporters will be in deep trouble. Competing nations like Bangladesh, Vietnam
and Cambodia have a duty advantage, which India does not possess.