Apparel export in negative territory due to declining trend in global industry: AEPC
Gurugram, May 17 (KNN) Apparel exports are in a negative territory since October 2017 due to a declining trend in the global apparel Industry, said HKL Magu, Chairman, Apparel Export Promotion Council (AEPC).
Also the high base effect has been due to the release of Rebate of State Levies (RoSL) amount during April 2017 but the continued backlog in GST and RoSL is affecting the sentiments.
Under the RoSL, the Centre gives garment exporters refunds against all the levies they shell out at the state level.
Magu referred to the decline in India’s apparel exports which showed a plunge of 22.76 % for the month of April 2018 as against the corresponding month of April 2017, as per the latest trade data.
In April 2018, the Indian RMG exports were to the tune of USD 1.34 billion (approximately) as against the corresponding month of April 2017, when the exports was USD 1.74 billion (approximately). In rupee terms export for the Month of April 2018 was Rs. 8859.67 Crore as against Rs. 11272.24 Crore in April 2017, showing a decline of 21.40%.
India’s apparel production has also shown a decline of 18.6% in the month of March, 2018 and a decline of 11% for the period April-March, 2017-18 as per the latest IIP figures. This is the 11th straight monthly decline in apparel production.
Talking about the decline in exports, Magu said, “The export figures for apparels for the month of April 2018 has shown a decline of 22.76 % and the apparel manufacturing is also in the negative territory.”
The apparel production has registered a decline for the 11th straight month in March. Last year (2017-18) the Industry witnessed a strong growth but now the exports are in a negative territory since October due to a declining trend in the global apparel Industry. The high base effect has been due to the release of RoSL amount during April 2017 but the continued backlog in GST and RoSL is affecting the sentiments.
“We would like the government to address the issue at the earliest to reverse the trend of stagnating exports,” the AEPC Chairman added.
While India’s Readymade Garment (RMG) export to World in the period April-March of 2017-18 was to the tune of USD 16.71 billion (approximately) which has decreased by 3.83 % compared to the same period of previous financial year. During April-March 2016-17, India’s apparel exports were to the tune of USD 17.38 billion (approximately).
AEPC has been engaging with the policy makers for an early resolution of the issues.