Apparel exports dip 23% as competition hurts

Kavitha Venkatraman in Chennai

Severe competition from countries like China and Bangladesh coupled with a slowdown in the US economy has hit the Indian apparel exports during the period January-June 2001 badly.

According to the latest figures released by the Apparel Export Promotion Council (AEPC), apparel exports during the period has dropped by about 23 per cent to $2,487.4 million (Rs 11,621.33 crore) from $3,235.6 million (Rs 14,186.09 crore). In terms of quantity too, exports hava declined substantially from 845.1 million pieces to 690 million pieces, registering a fall of about 18.35 per cent.

Competition, chiefly from China and Bangladesh had affected the volume and unit value realisation drastically during the period. In the case of the European Union, unit value of ladies dresses has dropped by 27 per cent from $6.72 per piece to $4.89 per piece. Of the overall exports, about 40 per cent was to EU followed by US, which accounts for 39 per cent and Canada five per cent. Exports to USA during the period was 163.3 million pieces amounting to $979.4 million (Rs 4,575.42 crore) as against 180.8 million pieces valuing $1,148.1 million (Rs 5,034.41 crore) in the same period previous year. EU, another market for Indian apparel, had imported 383 million pieces from India realising $1,003.6 million (Rs 4,687.05 crore). And exports to Canada was 37.9 million pieces valuing $123.2 million (Rs 575.72 crore) According to top sources in the Council, besides competitive pressures, the overall exports had dropped drastically as data on export to outside bilateral agreements were not available. The decision of the commerce ministry to do away with the procedure of getting the shipping bills endorsed by the Councils, has lead to non-availability of data, sources added.