Apparel industry to miss export target of $12 b

New Delhi: The Indian apparel industry is likely to miss its export target of $12 billion for financial year 2010-11 (April-March) and end the fiscal with exports of around $11 billion due to the slowdown in Europe, the Apparel Export Promotion Council of India said on Wednesday.

“We had a target of $12 billion for the current financial year, but we are way behind. The demand from western markets like the US and Europe has still not revived as there is a slow recovery in these economies,” Mr Premal Udani, AEPC Chairman told reporters.

Apparel exports declined for the third successive month in July, showing a 22.5 per cent annual drop in contrast to recovery in the country's overall exports which went up by 13.2 per cent in the same month.

Garment exports fell to $816 million in July on lower demand from the US and European markets.

The US and EU account for about 80 per cent of the country's total apparel exports, which aggregated to $10.64 billion in 2009-10.

During April-July period, apparel exports declined by eight per cent to $3.46 billion. Overseas shipments aggregated at $68.63 billion, up 30.1 per cent over the same period last year. To reduce the dependence on traditional markets like the US and Europe, apparel exporters are exploring new markets in Japan, West Asia, Africa and Australia.

MLFPS

While the Government announced extension of the incentives under the Market Linked Focus Product Scheme (MLFPS) to EU till March 31, 2011, industry wanted the relief to be provided for shipments to the US as well.

Under the MLFPS, exporters get two per cent incentive on value of exports.

Source: The Hindu Business Line