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Apparel exports drop
Why is it in the news?
- As per the statement from Apparel Export Promotion Council (AEPC), Apparel exports dropped 3.46% in 2018-19 compared with the year-earlier period.
- The drop is said to be mainly because exporting units took time to adjust to the new rates under the Goods and Services Tax (GST).
More in the news
- Apparel exports last financial year were worth $16.13 billion compared with $16.71 billion in the year-earlier period.
- However, in rupee terms, the exports grew 4.66 %.
- Under the GST, there was almost 7% reduction in the incentives that the exporters were receiving earlier and they also had to adjust to the new system.
- Though global apparel market was stagnant, leaders in the segment such as Bangladesh and Vietnam witnessed growth.
- Apparel and Textile sector:(1) The textile and apparel industry can be broadly divided into two segments - yarn and fibre, and processed fabrics and apparel.(2) The domestic textile industry in India is estimated to reach US$ 223 billion by 2021F from US$ 150 billion in November 2017, while cotton production in India is have reached 36.1 million bales in FY19.(3) In FY19, growth in private consumption is expected to create strong domestic demand for textiles.
Source
The Hindu.