Apparel export registers 19% growth in July 2013
Updated: Sep 04, 2013 05:30:56pm
New Delhi, Sept 4 (KNN) Despite the volatile economic situation, apparel exports in July amounted to USD 1,279 million, registering a 19 per cent growth, compared to the corresponding period last year.
“Apparel exports were to the tune of USD 1279 million in July 2013-14 with increase of 19 per cent against the corresponding month of last financial year. In rupee terms, the exports have increased by 28 per cent in July 2013-14 over the same month of previous FY,” said Chairman AEPC, A Sakthivel, releasing the garment exports data for the month.
In dollar terms, exports during April-July of FY 2013-14 had increased by 13 per cent over the same period of previous FY and reached USD 4,441 million. However, in rupee terms, exports increased by 18 per cent for the same period.
“In April-July 2013-14 in rupee terms apparel export of India was to the tune of Rs 27,538 crore compared to Rs 23,300 crore in April-July 2012-13,” he added, congratulating garments exporters for their good performance amidst the fast changing economic landscape.
Considering that apparel exports have registered consecutive growth of almost 11 per cent since the last four months, Sakthivel while appreciating government support to the employment generating sector requested the government to consider the RMG (ready-made garment) export sector under priority sector lending to sustain the momentum.
“…it is requested that RMG export sector, which is the largest employment generator after agriculture, should be considered under priority sector lending. With this, the bank’s commitment to RMG sector lending would be prescribed for ensuring adequate flow of credit to RMG export sector. It is also requested that a flat rate of 7.5 per cent, as priority sector export credit to RMG export sector may be prescribed as pre-shipment and post shipment export credit,” he said.
With regard to the depreciating rupee Sakthivel said it was advantageous in the short run. However it increased manufacturing costs. Moreover, on account of deprecating rupee buyers ask for discounts.
“Those exporters with high import content of products are facing huge problem as they have to pay more now which is putting dent on their profits. In RMG products, almost 25 per cent to 35 per cent is average import content which is quite a big share. Moreover other currencies across world are also fluctuating. High inflation and input cost further reduces our margin,” he said. (KNN/ES)
“Apparel exports were to the tune of USD 1279 million in July 2013-14 with increase of 19 per cent against the corresponding month of last financial year. In rupee terms, the exports have increased by 28 per cent in July 2013-14 over the same month of previous FY,” said Chairman AEPC, A Sakthivel, releasing the garment exports data for the month.
In dollar terms, exports during April-July of FY 2013-14 had increased by 13 per cent over the same period of previous FY and reached USD 4,441 million. However, in rupee terms, exports increased by 18 per cent for the same period.
“In April-July 2013-14 in rupee terms apparel export of India was to the tune of Rs 27,538 crore compared to Rs 23,300 crore in April-July 2012-13,” he added, congratulating garments exporters for their good performance amidst the fast changing economic landscape.
Considering that apparel exports have registered consecutive growth of almost 11 per cent since the last four months, Sakthivel while appreciating government support to the employment generating sector requested the government to consider the RMG (ready-made garment) export sector under priority sector lending to sustain the momentum.
“…it is requested that RMG export sector, which is the largest employment generator after agriculture, should be considered under priority sector lending. With this, the bank’s commitment to RMG sector lending would be prescribed for ensuring adequate flow of credit to RMG export sector. It is also requested that a flat rate of 7.5 per cent, as priority sector export credit to RMG export sector may be prescribed as pre-shipment and post shipment export credit,” he said.
With regard to the depreciating rupee Sakthivel said it was advantageous in the short run. However it increased manufacturing costs. Moreover, on account of deprecating rupee buyers ask for discounts.
“Those exporters with high import content of products are facing huge problem as they have to pay more now which is putting dent on their profits. In RMG products, almost 25 per cent to 35 per cent is average import content which is quite a big share. Moreover other currencies across world are also fluctuating. High inflation and input cost further reduces our margin,” he said. (KNN/ES)
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