Export of Ready Made Garments (RMG) continued its southward journey, recording a drop of 12.12 per cent to $6.61 billion from $7.522 billion from April to August in the corresponding time period last year due to the impact of the GST and the reduction in duty drawback.
The year started with a 22.78 per cent drop in April, from $1.747 billion a year ago to $1.349 billion in 2018. In August, the export touched $1.292 billion in 2018 as compared to $1.338 in 2017.
But at the same time, the exports clocked a 5.03 per cent growth in rupee terms, thanks to currency fluctuations. The exports in August 2018 was Rs 89.87 billion as compared to Rs 85.57 billion clocked in August 2017, a growth of 5.08 per cent. Exporters said the impact after the implementation of the GST, reduction in duty drawback, and ROSL (remission of State Levies) was visible on the export trends.
"With the Government's initiatives, we expect to see the reverse trend this financial year," said Raja M Shanmugham, President of Tirupur Exporters’ Association.
"A delay will drive our buyers to resort to Bangladesh, Vietnam, Ethiopia, Myanmar and once if they settle there it is difficult to bring them back immediately. Meanwhile, the season will go off with partial orders," the official said.
The rupee falling to an all-time low might help the exporters' cause as it will narrow the price difference between Made-in-India textiles and competing nations, including Vietnam, Cambodia and Bangladesh. The development comes at a time when exporters are going to finalise agreements for the next set of orders.
Source :- Dailyshippingtimes.com