India’s apparel exports fell by 23 per cent in April 2018 compared to April last year.
Reasons include high input costs, delay in GST refunds and stiff competition from Bangladesh, Vietnam, Pakistan and China.

Apparel exports have fallen for the seventh month in a row.In rupee terms, exports in April 2018 declined by 21.4 per cent compared to the corresponding period last year. In 2016-17, the industry witnessed strong growth, but now exports are in a negative territory since October last year.

In particular India’s apparel exports from Punjab, Haryana and Uttar Pradesh have seen a steep decline. Around 200 exporters in Punjab and Haryana have been affected. Input costs in Punjab, Haryana and Uttar Pradesh are much higher compared to costs in the Tirupur cluster.

The industry has asked for expediting GST refunds and remission on state levies in a time-bound manner.

Due to their poor competitiveness in the international market, many Indian apparel exporters have increased their exposure in the domestic market. However this will not be good in the long run for India, which used to be a dominant player in the international apparel export market.

India’s readymade garment exports in the previous financial year were around 16.71 billion dollars compared to 17.38 billion dollars in 2016-17.