The value of clothing exports is likely to touch 20 billion US dollar during the fiscal 2016-17, following the Rs 6,000 crore special package for textiles and apparel sector announced by the government last week, according to The Clothing Manufacturers Association of India (CMAI).
The package is aimed at creating one crore new jobs over a three-year period and attract 11 billion US dollar new investments, and increase apparel exports to 30 billion US dollar.
“India’s apparel export value, estimated at 16.80 billion US dollar now, is expected to reach 20 billion US dollar during the current fiscal. The special package announced by the government will not only help in attracting large investments but also enhance production capacity,” CMAI president, Rahul Mehta said in Mumbai.
The inclusion of state-level taxes in the computation of duty drawback will provide a major relief to the exporting segment, Mehta said announcing CMAI’s 63rd National Garment Fair to be held from July 13.
About the first quarter ending June 30, 2016, Mehta said the industry may see a five per cent decline in exports due to the prevailing downturn in the global economy which continues to adversely impact India’s garment industry.
He said the domestic garment industry also faces dull market conditions and may witness flat growth or a two per cent decline in consumption in the quarter ended June, 2016.
Commenting on Britain’s exit from EU, Mehta said there may not be immediate fallout of the referendum on the business front, but there could be a period of uncertainty and confusion for some time.
The apparel industry also has huge export potential in Iran, which has a 16 billion US dollar market, 60 per cent of which is met through imports, he added.
The three-day National Garment Fair will see participation from 812 brands and nearly 40,000 retailers from across the country are expected to it, Mehta said.