Indian apparel exporters are facing various constraints. Among these are increased prices of raw material, the Russia-Ukraine war and sluggish demand in major garment importing countries. In addition buyers are asking for higher discounts.

The impact of the global slowdown on trade is beginning to show on credit demand from Indian exporters, with export credit by banks shrinking nearly a quarter year on year at the end of October 2022 by 25 per cent, signaling further downsizing in overseas merchandise exports. Most of the traditional markets of Indian readymade garments including the UK, EU and the US are witnessing recession and global headwinds, leading to shrinking of demand on one side and buyers asking for discount on the other.

Exporters now are waiting for free trade agreements in these markets to be expedited and ensure all tariff lines of the garment sector to be insured, which will enable a duty reduction from existing 9.6 per cent and act as a strong breather. Among the issues they have raised are early announcement of the PLI-2.0 scheme, extension of ATUFS, RoSCTL disbursements through bank transfer; relaxations to apparel exporters under various provisions, one-time relaxation on account of bankruptcy, insolvency , discounting, cancellation of export orders, and raw material security.