Apparel exports may reach $16 bn in FY'14: AEPC

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SME Times News Bureau | 06 Aug, 2013
Apparel exports from the country have shown an increase of 12.13 percent to the tune of USD 1.24 billion in June against the corresponding month of last financial year and likely to grow by 24 percent to USD 16 billion in FY'14, informed Dr. A Sakthivel, Chairman AEPC, while releasing the data on the apparel exports for the month of June.

"Export for 3 months of the FY 2013-14 has increased by 11 percent over the same period of previous FY and reached to USD 3561 million," stated Sakthivel in a press statement on Monday.

"In the FY 2012-13 exports declined by 6 percent from previous FY and totaled USD 12923 million in April-March 2012-13," he added.

On the imports from India by USA, Dr. Sakthivel informed, "Apparel imports of the United States witnessed increase of 3.7 percent in the Jan-May of 2013 from the previous year and amounted to 30.6 billion dollars.

In the Jan-May 2013, US imports of apparel from India declined by -.1 percent and reached to USD 1499 million against USD 1500 million in Jan-May 2012. US imports saw increase from all major suppliers in Jan-May 2013 over the corresponding period of last year except for Mexico and India.

In Jan-May 2013 India was at 6th position. India exported USD 285 million apparel in May 2013 with increase of 3.3 percent over the same month of previous year.

EU's apparel import accounted for USD 32.8 billion for the Jan-May 2013 with a decline of -.6 percent over the previous year. India's export to EU for the Jan-May 2013 amounted to USD 2.5 billion with a decline of -1.1 percent compared to same period of previous year, Chairman AEPC observed.

On the outlook of the garment exports Dr A Sakthivel said, "Indian apparel exports in the last fiscal were down by 6 percent amounting to USD 12.9 billion. In the last three months of current fiscal 2013-14 exports have shown a robust growth of 10 percent."

"In the next ten months of the current fiscal if we keep growing with the same pace then exports would touch around USD 16 billion. Increase in the April-June month of FY 2013-14 is attributed India's good performance in US & EU market as India's exports to these markets increased by on an average of 16 percent. At the end of the current financial year as per the estimates we are expecting a growth of around 15 to 16 percent if the other factors keep supporting the current rate of export growth," he added.

On the demand from Government Chairman AEPC has written to FM to give separate chapter for interest rates in export sector.

In his letter Chairman AEPC wrote, "Reserve Bank of India has announced the credit policy. However, the garment export industry was expecting lowering of the interest rate, which has not been announced. The pre and post shipment credit rates are hovering around 10 percent which is very high when compared to interest rates available to our competitors."

"It was your initiative through which you had given a separate chapter for interest rates in the export sector. The industry appeals to you for reintroduction of the separate rates of fixed 7.5 percent for the labour intensive sectors of clothing and textiles," he added.