Weaker rupee which seems to be in favour of Indian apparel exporters may now cause another problem for apparel exporters’ fraternity. Apparel Resources got to know from credible sources that the duty drawback rates which are expected to be announced soon, may remain less than the expectations and demand of exporters.
Notably, the Indian rupee has hit an all-time low against the US dollar after having fallen more than 12 per cent this year. From the last few days, the value of Indian Rupee is hovering around 73 against the US dollar, which used to be around 62 earlier.
“Government think tank feels that due to weaker rupee exporters are gaining while it is not right as overseas buyers are not passing the benefit to exporters. In any case or in the condition of small buyers If there is a little benefit too for Indian exporters, that is short-term while policy decision like the increased drawback rates is a long-term solution and need of the hour,” an anonymous top exporter of the country who is also associated with the trade bodies affirmed Apparel Resources.
There is a sharp fall of 12.17 per cent in India’s apparel export on the Y-o-Y basis from January to August this year. According to an official data, Indian apparel export in these 8 months was US $ 10,952 million while the same was US $ 12,470.30 million during the same period in 2017.
Markedly, even looking further ahead, there are not many positive indications or strong initiatives at any end that shows Indian apparel export can grow much. We at Apparel Resources raised the issue to the industry and all exporters were in favour of the opinion that increased incentive can be the boost, the Indian garment industry needs at present.
HKL Magu, Chairman, AEPC (Apparel Export Promotion Council), the official body of Indian apparel export industry stated, “We have some indication, so we made presentation to the officials in this regard. We need at least 7.5 per cent rate of duty drawback and ROSL.”
Furthermore, the chairman also marked out that in a bid to increase Indian apparel export, AEPC is working to invite more and more foreign buyer delegation and coordinating with the overseas association for the same.