INDIAN GARMENT INDUSTRY AT A GLANCE IN 2019 - 2020 General Overview
India's apparel exports is estimated to de-grow by 4-5% in FY2019. There was a similar de-growth of 4% in FY 2018 and modest growth rates of 1% and 3% in FY2016 and FY2017 respectively, says an ICRA report. Indian apparel exports are falling, estimated at $16.2 billion in FY19. Even the share of apparel exports in the country’s total textile exports has fallen sharply from 51% in FY17 to 45% in FY19
The reasons for the slowdown range from issues on the domestic front to slackening global demand. The time taken by the Indian Garment industry to align to the new goods and services tax (GST) regime, downward revision of export incentives, and the credit squeeze adversely impacted exports of Indian garments.
Add to this , the recent slowdown in global demand has increased competition in the markets, which also coincided with taxation changes in India. Analysts say that there was a 6-7% impact on costs, which hurt profitability of garment makers.
