Garment exports up 19% to $1.27 bn in July: AEPC
New Delhi: India's garment exports grew by 19 percent year-on-year to USD 1.27 billion in July on the back of increasing demand in developed economies such as the US.
Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said garment exports to the US has witnessed a growth of 3.7 percent during the first five months of 2013.
During April-July 2013-14, garments exports grew by 13 percent to USD 4.84 billion, AEPC said in a statement.
However, Sakthivel said European market is still not recovering. The US and Europe together account for about 60 percent of the country's total apparel shipments.
"Demand for Indian products are still not increasing in the EU markets. Apparel exports are declining in Europe," he said.
On depreciating rupee, Sakthivel said a stable currency and exchange rate is always good in the long run.
"We want buyers to have long term contracts. It is advantageous in the short run; however, it is pushing up the manufacturing cost," he added.
He said on account of deprecating rupee, buyers are asking 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," he said.
Ready-made garment products have almost 25-35 percent import content.
In 2012-13, apparel exports declined by 6 percent to USD 12.92 billion.
Further, the Chairman asked the RBI to include export sector in the priority sector lending of all banks, a move which will help exporters in getting easy and affordable credit.