Garment export of India estimated at $16.80 billion now, expected to reach to $20 billion (nearly Rs 1.33 lakh crore) during the current fiscal, helped by the new initiatives announced by the government for the sector, an industry official said.
The Union Cabinet last week approved a Rs 6,000 crore special package for textiles and apparel sector with an aim to create one crore new jobs in three years and attract investments of $11 billion with an eye on $30 billion in exports.
The special package will not only help in attracting large investments but also enhance production capacity, said Rahul Mehta, President of Clothing Manufacturers Association of India (CMAI).
The inclusion of state-level taxes in the computation of duty drawback will provide a major relief to the exporting segment, Mehta said.
However, the prevailing downturn in the global economy continues to adversely impact India's garment industry. During the first quarter ended June 2016, the industry may see a 5% decline in exports. Total exports of apparel from India stood at around $4 billion in April-June 2015.
The domestic garment industry also faces dull market conditions and may see flat growth or a 2% decline in consumption in the quarter ended June 2016.
CMAI is organizing The National Garment Fair, a mega trade show - on July 13-15 in Mumbai. The event will see participation from 812 brands and nearly 40,000 retailers from across the country are expected to visit the three-day B2B fair, Mehta said.
Mehta commenting on Britain's exit from EU, said that there may not be an immediate fallout of the referendum on the business front, but there could be a period of uncertainty and confusion for some time.
There may not be any dramatic impact on India's garment exports to the UK or EU. However, a lot would depend on the exact agreements and treaties to be worked out by both sides, especially on tax implication on movement of goods between the two geographies.
However, aggressive follow-up for Free Trade Agreement (FTA) with EU and other countries is required . Post-Brexit, Mehta felt, there could be a further delay in the signing of the FTA with EU.
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