Take-off of retail demand in the US and Europe, India’s key markets for apparel exports, has been downsized from June. Buyers have revised demand projections by 30 to 40 per cent. They have also delayed orders for Indian ready-made garments for the next spring season by 15-20 days. Spring collections start arriving at retail stores in the Northern hemisphere closer to January. Orders for these are usually placed by mid-August or early September and goods are shipped by November.

However, Gautam Nair, Managing Director, Matrix Clothing says downward revision of orders was specific to a few buyers and it was still early to generalize it as a decline across the board. Another manufacturer point out retailers may also be carrying leftover stock from last spring as sales were hampered due to the onset of pandemic.

India exports ready-made garments to some leading high-street labels, departmental stores and supermarket chains overseas. These include H&M, Banana Republic, JC Penney, J Crew, Neiman Marcus, and Target. Exports declined by over 50 per cent in April-July of this fiscal year to $2.5 billion, according to data from Apparel Export Promotion Council (AEPC).