India’s readymade garment export registered a positive growth of just 8.06 per cent May, compared to corresponding period last year. RMG exports were $1,605.37 mn in $1,485.67 mn in May 2016 last year. In rupee term export for the Month of May 2017 was Rs. 10,342.55 cr as against Rs. 9,940.10 cr in May 2016 with the growth of 4.05 per cent.
Chairman AEPC, Ashok G Rajani, said that, “The decline in growth is attributed to two reasons. Though the exporters are happy with the new rates announced by the GoI under GST, they need to ensure compliance with GST for input credit for the already existing stock on June 30 which has lead to curtailment in production. Secondly, there is uncertainty about the continuation of, which was appreciated and used by SMEs in large numbers ROSL to boost exports, and is another reason for declining of exports.”
According to a recent survey done by AEPC in 8 states where there is significant apparel production, 85 per cent of apparel exporters admitted that they were substantially benefited by ROSL in their export performance, while 65 per cent rate the impact of ROSL as high or game changing.