Dr. A Sakthivel, Chairman AEPC, releasing the data on the apparel exports for the month of June stated that, “Apparel exports were to the tune of US D 1240 million in June 2013-14 with increase of 12.13 per cent against the corresponding month of last financial year.
In rupee terms, the exports have increased by 17 per cent in June 2013-14 over the same month of previous FY.”
Export in dollar terms for 3 months of the FY 2013-14 has increased by 11 per cent over the same period of previous FY and reached to USD 3561 million however, in rupee terms exports increased by 15 per cent compared to same period of last FY. In April-June 2013-14 in rupee terms apparel export of India was to the tune of Rs. 19918 crore compared to Rs. 17342 crore in April-June 2012-13, he added.
In the FY 2012-13 exports in dollar terms declined by 6 per cent from previous FY and totaled USD 12923 million in April-March 2012-13.
On the imports from India by USA, Dr. A Sakthivel informed that, “Apparel imports of the United States witnessed increase of 3.7 per cent 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 % per cent 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 US$ 285 million apparel in May 2013 with increase of 3.3 % 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 per cent 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 per cent compared to same period of previous year, Chairman AEPC observed.
For the period Jan-May 2013 apparel Turkey and Bangladesh are the only suppliers which had registered increase in the apparel export to EU and China and India had registered decline.
In the month of May 2013 compared to same month of last year, all suppliers except for Turkey had registered decline in the apparel export to EU and China had registered highest decline.
EU’s apparel import accounted for USD 83625 million in the year 2012 with a decline of 12.3 per cent over the previous year. India’s export to EU amounted to USD 5129 million with decline of 21 per cent over the previous year.
On the outlook of the garment exports Dr A Sakthivel stated that, “Indian apparel exports in the last fiscal were down by 6% amounting to US $ 12.9 billion. In the last three months of current fiscal 2013-14 exports have shown a robust growth of 10%. In the next ten months of the current fiscal if we keep growing with the same pace then exports would touch around US $ 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%. At the end of the current financial year as per the estimates we are expecting a growth of around 15 to 16 % if the other factors keep supporting the current rate of export growth.”
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% 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 % for the labour intensive sectors of clothing and textiles.”
