India’s apparel exports are likely to decline by five per cent during the first quarter of the financial year due to the ongoing global economic slowdown and the uncertainty over recovery in the months to come. The peak summer demand season didn’t go as expected. For the first time in many years, sentiment for the domestic apparel sector also remained weak. So domestic sales are expected to see flat to marginal growth in the June quarter.
Britain's vote to exit the European Union is unlikely to affect India's apparel exports in the near term though there could be some impact in the long term. There are two years to go for the actual exit from the date of formal announcement and that may give time for things to settle.
Europe took 37 per cent of India’s $16.5 billion apparel exports, with the UK taking 42 per cent of Europe’s contribution. The Rs 2,50,000 crores domestic apparel industry in India, in addition to the Rs 1,11,500 crores exports, is dominated by the unorganised sector, which has nearly 70 per cent contribution. Apparel exports were $4 billion in the June quarter of 2015. For all of 2015-16, it was $16.5 billion.