After the decline of the last four-month, Apparel Exports have again turned positive. RMG exports for the month of November 2022 has shown a positive growth of 11.7 percent compared to November 2021, accordingly the converted value is tuned to $1198.0 mn against $1072.9 of November 2021. Similarly cumulative RMG exports for the period Apr-Nov, 2022-23 is $10359.4 mn, showing a growth of 7.2 percent over 2021-22.
Speaking on this positive turnaround, Naren Goenka, Chairman AEPC said, “RMG exports from India have been witnessing a rough patch in past few months since most of the traditional markets of Indian RMG including UK, EU and the USA have been witnessing recession and global headwinds, leading to shrinking demand in these countries on one hand and buyers asking for 15 percent discount on the other. In addition, inflation and rising raw material and freight cost aggravated by the Russia- Ukraine war further adding to the burden. However, after a few months of slip, RMG exports have again turned positive signaling the resilience of the industry to adjust to the prevailing challenges.”
Further Chairman AEPC informed, “The total set target of apparel exports for 2022-23 is $17.6 bn against which we have been able to achieve more than $10 bn during April – November 2022. In spite of all the constraints, we shall achieve the level of exports of last year.”
Chairman AEPC stressed, this growth story needs to be continued in light of the government efforts to expedite FTAs in these markets and ensure all tariff lines of RMG sector are covered, which will enable a duty reduction of existing 9.6 percent in EU & UK and approx 17 percent in Canada acting as a strong breather to enhance our price competitiveness in these markets.
Towards further boosting RMG exports, Chairman AEPC, Goenka have briefed the government about the RMG exports scenario and issues the industry is currently facing. The major issues submitted by AEPC are: Early announcement of the PLI – 2.0 Scheme, Extension of ATUFS, RoSCTL disbursements through bank transfer, One Time relaxation on account of bankruptcy / insolvency / discounting / cancellation of export orders, 5 percent interest subvention, Request for extension of GST exemption on International Outbound Freight, etc.
