New Delhi, July 1 (KNN) Textile machinery manufacturers' body - India International Textile Machinery Exhibitions (IITME) Society - does not see any immediate threat from Brexit. However, IITME feels that the sectors exporting in volumes would be impacted.

Talking to KNN, Chairman, IITME, Sanjiv Lathia said that UK’s exit from the European Union will have huge impact on some sectors where India is exporting in volumes. Apparel is the major industry which seems to be affected due to Brexit as India exports around 37% of total apparel to EU& among EU countries, UK forms major share, he said.

He explained that, “Indian textile machinery industry foresees least impact as EU countries are not big buyer of textile machineries. The total industry export stood around USD 1.18 Million in the year 2014 which is very minimal value. The manufacturing base in EU countries is long back shifted to Asian countries like China, India, Pakistan, Srilanka &Vietnam, so the major machinery demand comes from these countries. There is hardly any demand from EU countries.”

“So, one of the major sector of Indian Textile Industry which would get affected is apparel sector as UK is one of major export partners to India. Brexit will certainly not favor Indian garment exporters. Fluctuating currency & global stock market volatility is the major concern to all exporters. Last week, the British Pound (GBP) has dropped more than 10% against the dollar. In fact Indian Rupee dropped four month low post Brexit. Hence, currency volatility is something which might have immediate impact on our garment exporters,” said IITME chairman.

“In long run, the only way to grow business with UK would be through bilateral agreements between two countries which will support the export to UK,” he added.(KNN Bureau)