Apparel exports declines
Apparel exports to the US at $574.14 million till February 2007, declined by 7.4% over February 2006, according to data available with the Office of Textiles and Apparel, US department of commerce. Apparel exports to the US grew a mere 2.67% in volume terms for the year ended February 2007, as against 6.34% for 2006.“Blame it on the strengthening of Indian rupee,” says Mr Vijay Venkatasamy, past chairman of the Southern India Mills’ Association (Sima). As the rupee has climbed a nine-year peak against the US dollar, garment exporters are a worried lot as they have found the rupee appreciation eating their margins. “The appreciation will erode our margins. We normally operate with a 5%-10% margin and now the rupee appreciation is eating into our margins.
Exports to the US will be affected in the short term,” according to a Tirupur-based exporter. About 35% of textile exports pegged at $17 billion (Rs 74,800 crore) for 2005-06 are to the US. Along with the rupee appreciation, the severe pressure on prices, high interest costs, growing inputs cost on account of rising inflation are making exports from India highly uncompetitive in world markets.
