India Garment Exports May Fall In Fiscal Year 2010-2011

In fiscal year 2010-11, India Of Clothing export Hopeful Down 3% It was reduced to $10 billion 200 million because of the higher cost of cotton cloth in the local market.

Coty Singer, Secretary General of the India Garment Export Promotion Association (AEPC), said: "the rising price of cotton yarn affects clothing exports. The rising cost of clothing has been turned to other neighboring markets by foreign buyers, such as Bangladesh and Vietnam, which are more cost effective. " The United States and the European Union account for 80% of India's clothing exports.

Industry experts say the price of cotton yarn has increased by 40% in the past three months, due to the rising cost of cotton cloth. To quell the growth of yarn prices in the domestic market, the India government has restricted the export of cotton yarn to 720 million kilograms in the current financial year. In October, India's clothing exports reached $717 million, unchanged from the same period last year, according to the India garment export promotion association. By the end of this fiscal year, India's clothing exports declined in July. However, exports have seen positive growth since August. In the first 7 months of the current fiscal year, clothing exports in India dropped by 6% to $5 billion 700 million. The clothing industry provided employment for about 7 million people, half of whom worked in the export sector.