AEPC hails growth in the garment exports during May 2013
Updated: Jun 18, 2013 01:50:49pm
Gurgaon, Jun 18 (KNN) Hailing the growth in garment exports for the month of May 2013, the Apparel Exports Promotion Council (AEPC) said that the garment sector continued to do well and was on a positive trend.
Commenting on trade data released by the commerce secretary for the month of May 2013, “The better compliance practices adopted by factories under DISHA programme and efforts made by AEPC by organizing several fairs overseas have yielded results,” Chairman of AEPC, A Sakthivel said.
While big chain stores and international brands have increased their share of sourcing from India, the garment manufacturers he said were committed to improvement in factory capacity and delivering quality products.
Commerce Secretary informed that exports dipped by 1.1 pc to USD 24.5 billion in May 2013. After growing for four consecutive months, India's exports contracted by 1.1 per cent year-on-year in May to USD 24.5 billion.
Exports in May 2012 stood at USD 24.77 billion. India’s imports grew by 6.99 per cent to USD 44.65 billion, leaving a high trade deficit of USD 20.1 billion.
However, cumulative value of exports during April-May 2013-14 grew by 0.21 per cent to USD 48.67 billion over the same period last year. Imports during this period were up by 8.88 per cent to USD 86.6 billion, Commerce Secretary said.
Meanwhile, on Monday, commenting upon the Reserve Bank of India’s move that held key interest rates unchanged despite calls from industry lobbies for easing money supply, AEPC chairman had said, "We are disappointed with RBI's Stand.”
"Apparel SMEs were expecting a rate cut of 0.5 per cent which is mainly required to remain competitive in the international market due to higher interest rate. The median lending rates on pre-shipment Rupee export credit upto 180 days ranged between 10.55 – 13 per cent in end 2012 as compared to 10.75 – 12.88 per cent in March, 2012. These remain high in same range," he said.
At the beginning of the 12th Plan period, the outstanding credit gap for the MSME sector was estimated at 62 per cent, which is estimated to reduce to 43 per cent in March, 2017 with the assumption of minimum 20 per cent year-on-year credit growth to MSME sector, APEC added.
"Thus rate cut is necessary to achieve this and reduce gap. The figures truly reveal that the units are reluctant to avail the credit due to higher interest rate apart from market conditions.
"The garment exporting units are expected to invest in product development and also replace the old machineries to remain productive and therefore, the credit needs are required to be replenished at a flat rate of interest," it added. (KNN)
Commenting on trade data released by the commerce secretary for the month of May 2013, “The better compliance practices adopted by factories under DISHA programme and efforts made by AEPC by organizing several fairs overseas have yielded results,” Chairman of AEPC, A Sakthivel said.
While big chain stores and international brands have increased their share of sourcing from India, the garment manufacturers he said were committed to improvement in factory capacity and delivering quality products.
Commerce Secretary informed that exports dipped by 1.1 pc to USD 24.5 billion in May 2013. After growing for four consecutive months, India's exports contracted by 1.1 per cent year-on-year in May to USD 24.5 billion.
Exports in May 2012 stood at USD 24.77 billion. India’s imports grew by 6.99 per cent to USD 44.65 billion, leaving a high trade deficit of USD 20.1 billion.
However, cumulative value of exports during April-May 2013-14 grew by 0.21 per cent to USD 48.67 billion over the same period last year. Imports during this period were up by 8.88 per cent to USD 86.6 billion, Commerce Secretary said.
Meanwhile, on Monday, commenting upon the Reserve Bank of India’s move that held key interest rates unchanged despite calls from industry lobbies for easing money supply, AEPC chairman had said, "We are disappointed with RBI's Stand.”
"Apparel SMEs were expecting a rate cut of 0.5 per cent which is mainly required to remain competitive in the international market due to higher interest rate. The median lending rates on pre-shipment Rupee export credit upto 180 days ranged between 10.55 – 13 per cent in end 2012 as compared to 10.75 – 12.88 per cent in March, 2012. These remain high in same range," he said.
At the beginning of the 12th Plan period, the outstanding credit gap for the MSME sector was estimated at 62 per cent, which is estimated to reduce to 43 per cent in March, 2017 with the assumption of minimum 20 per cent year-on-year credit growth to MSME sector, APEC added.
"Thus rate cut is necessary to achieve this and reduce gap. The figures truly reveal that the units are reluctant to avail the credit due to higher interest rate apart from market conditions.
"The garment exporting units are expected to invest in product development and also replace the old machineries to remain productive and therefore, the credit needs are required to be replenished at a flat rate of interest," it added. (KNN)
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