India’s garment exports witness a rebound
There has been an augmentation in the exports of India’s readymade garments (RMG), after a 2 year hiatus. Exports of RMG for May’18 rose by 14.05% YoY in May’19 to reach US$ 1.53 billion. Interestingly, while Indian products tend to be costlier by 10-15%, they have a strong consumer demand. The apparel industry, too, is expected to grow by about 8-10%, now that it has recovered from the 2 year slump which stemmed from factors like demonetisation & the introduction of GST.
According to industry experts, the revival is attributable to measures by the government including an increase in rebate of State and Central taxes and levies, new benefits under MEIS & renewed 2% duty drawback. At the same time, there were some positive international developments – China’s exit from some segments of the textile sector, costlier labour in Bangladesh, and stagnation in Vietnam’s industry – that helped Indian exports.