The news of promising vaccine tests has improved sentiments of ready-made garment exporters with western retailers placing bulk garment orders for the upcoming Spring/Summer season. The decline in orders is narrowing in H2, says Gautam Nair, Managing Director, Matrix Clothing. However, the real impact of the news around vaccines would be felt in coming month as buyers finalize their orders for summer collections.

The country exported ready-made garments worth $15.4 billion (Rs 1.1 lakh crore) in the previous fiscal year, according to data from the Directorate General of Commercial Intelligence and Statistics (DGCIS). The October to March period is relatively busier for apparel exporters as they ship the Spring/Summer collections to the US and Europe. India’s garment trade is skewed towards cotton-based fabrics, the demand for which peaks during this time of the year. It accounts for over 55 per cent of total exports, according to DGCIS data.

High sales during this period could help companies offset some of the losses incurred during the first half of this financial year. However, leftover inventory from last year could play spoilsport, exporters cautioned. Many retailers had stored excess inventory in warehouses to be sold in 2021, which could impact the business of Indian exporters this season.