HOME > BUSINESS > Apparel exporters bemoan rising rupee, seek support

Apparel exporters bemoan rising rupee, seek support

Apparel manufacturing is a big job creator in Tamil Nadu

Indian apparel makers have sought government intervention to stabilize the rupee, which has been rising in recent months, in stark contrast to the situation in other countries that compete with India in exporting garments.

“Other countries started taking recourse to depreciating their respective currencies during the last one-and-a-half years, whereas Indian Rupee got appreciated,” complained Apparel Export Promotion Council or AEPC, an organization of exporters.

According to the data compiled by the AEPC, the Chinese Yuan depreciated by 13% against the dollar in the last 12-18 months, Bangladesh Taka by 6% and Vietnam Dong by 7%. The Indian rupee, however, has risen by about 6% in the last 3-5 months.

The rupee has risen against the dollar even as the dollar has risen against most other currencies due to strong flows of foreign institutional investor (FII) money into India’s stock markets.

Foreign investors are seen to be bracing for a big bull run in India’s stock market as the India’s prime minister Narendra Modi is seen coming back into power in 2019.

The AEPC said foreign inflows do not have to mean a strong rupee. “China got highest FDI during this period and still they resorted to depreciate Chinese Yuan just to protect their exports and employment,” it said.

“Exporters are not able to book orders due to over-valued rupee as apparel exports are highly price-sensitive,” said Ashok Rajani, Chairman AEPC.

Quoting Reserve Bank of India figures, he said the rupee was over-valued by 18% in Feb 2017.

“Now it is almost 20%. It calls for a carefully considered strategy and more pragmatic approach to arrest the rise of rupee in overall interest of export endeavor and boosting employment in our country.”

The growing cotton prices and rupee appreciation will nullify the intended impact of recent export stimulation packages and also weaken India’s position against its competitors, he added.

In June last year, the government announced financial and investment incentives for the garments and apparel sector, besides critical labour flexibilities, with an aim to generate 1 cr additional jobs and $30 bln additional exports.

The sector is one of the largest employment generators in the country — especially in states like Karnataka and Tamil Nadu and for rural women. It is estimated to employ 10.5 crore persons — about 15% of the country’s workforce — directly and indirectly.

According to AEPC, each Rs.100 crores of apparel production generates Rs 30 crores of labor income.

“Despite Govt.’s intentions and support to the industry, exports are hardly picking up. The primary reason is strong rupee and depreciation of currencies of our competing countries like China, Bangladesh and Vietnam,” it added.

COTTON PRICES

The second factor worrying apparel makers is rising cotton prices.

Cotton prices have increased by 24.7 per cent on an average, across all categories, in the last one year, the AEPC said.

“Some categories have seen hike of up to 35%,” the organization said.

Follow ULTRA.news
Raymond opens Ethiopia factory to cut costs, easy access to US, EU Textiles and garments brand Raymond inaugurated a garment manufacturing plant in Ethiopia to gain duty-free access to the US and European markets.The plant was set up at a cost of Rs 100 cr and will employ over 2500 people in the first phase. More people will join later, the...
Raymond shareholders reject sale of JK House flats to promoters Shareholders of Raymond Ltd rejected the sale of apartments in the company's headquarters JK House to certain promoters.Chairman of the company Gautam Singhania had urged shareholders to vote against the resolution as the sale of the apartments would cause losses to the comp...
Smuggling down on Indo-Bangladesh border, up on Bhutanese side Incidents related to smuggling of fertilizer and narcotics on the Indo-Bangladesh border fell sharply in 2016, but there was a compensatory increase in drug smuggling cases along India's border with Bhutan and Nepal, according to data from the Union Home Ministry.Fertilizers ...
SEZ exports eligible for rewards under MEIS and SEIS schemes SEZ exports are now eligible for scripsThe government has extended the rewards under its merchandise and services export from India schemes to units located in special economic zones.Special economic zones are areas -- usually located close to seaports or airports -- whe...
Can’t block imports of cheap chinese solar panels – Nirmala Seetharaman The government of India said it cannot seek to slow down imports of solar power generation equipment from China as it has to watch out for the interests of Indian consumers as much as those of Indian industrialists.Responding to questions from the opposition in Lok Sabha ...
Center imposes stock-holding limits on sugar Faced with the prospect of lower-than-expected production of sugar in the ongoing season due to drought, the government has imposed stock curbs on dealers to prevent speculation and hoarding, the food and consumer affairs ministry said today."With the objective of keeping the...
TRUMP THREAT: TCS not worried, says we’re not the villains source: NasscomTata Consultancy Services, the largest Indian-owned outsourcing company, said it is able to manage with 75% less new visas this year as it has changed its business and recruitment models in recent years. It also said that outsourcing was key to protecting US j...
Industry welcomes move to include made-ups in apparel package SIMA has welcomed the move include made-ups in the apparel packageThe industry has welcomed the move by the government led by Narendra Modi to extend support to the made-ups export industry and said it would help the sector break out of its current slump.The cabinet had ...
Exports increase share of jobs in India – Study A new study by the Exim Bank has found that around 15% of the total jobs in India are related to India's exports sector, including both IT, BPO and material goods such as garments.The total number of jobs supported by aggregate Indian exports increased from about 34 milli...
Nike starts online sales in India US sports goods manufacturer Nike has started online retail operations in India via its portal Nike.com.India-based users can now order from the global portal and have it home delivered.Earlier, only certain markets such as Australia, Hong Kong and Indonesia were bein...
Aditya Birla´s fashion and retail unit ties up with UK luxury brand Ted Baker Aditya Birla Fashion and Retail Ltd said it entered into agreement with UK based fashion brand Ted Baker.Ted Baker London is a British luxury clothing retail company."We are happy to join hands with Ted Baker and build a strong presence for the brand with Indian consumers...
V2 Retail opens its 32nd store in Sitamarhi, Bihar Value retailer V2 Retail Ltd. said it has opened a new retail store at Sitamarhi, Bihar.By this launch V2 retail currently has 32 operational retail stores across the country.V2 Retail Limited is a retail company in India.It offers more than 70,000 products including...
India overdependent on China for medicines – study India may have emerged as a key supplier of generic and affordable medicine for the world market, but it has an "overwhelming dependence" on China for the raw material required to produce these drugs, industry association Assocham said.Indian companies depend on China to supp...
Ranveer Singh’s rap song for Jack & Jones campaign to go live tomorrow Bollywood´s peppy boy Ranveer Singh will promote the international fashion wear Jack & Jones new campaign "Don´t hold back".The fashion brand has chosen the Bajirao Mastani actor as their new brand ambassador. And the fashion star along with the brand has already made a r...
India-Pakistan invisible trade worth $5 bln a year – study Informal trade or smuggling of goods between India and Pakistan is estimated at over USD five billion, almost double the official two-way commerce between the two neighbours with history of chequered ties, said an ASSOCHAM study.There are more exports from India than imports...
Nandan Denim to issue 50 lakh warrants at Rs 200 each Nandan Denim Limited (NDL), a Gujarat- based fabric manufacturer, said it is planning to issue 50 lakh convertible warrants to foreign investors at Rs 200 each, aggregating to Rs 100 cr."The company will be issuing 25 lakh fully convertible warrants each to Foreign Portfo...
Mumbai based company claims to make water-absorbing synthetic fabric A Mumbai based company, Fiberweb India, has claimed to have setup facility to modify water repellant properties of polypropylene fabric and transform it into a water absorbing (hydrophilic) substance.Polypropylene, like most petroleum-based synthetic fibers, repels water. Thi...
Pearl Global revenue grows 33%, profits up 6% Pearl Global, one of India’s largest garment maufacturers and exporters, said that their first-quarter revenue grew by 33% to Rs 3,757 crore from 2,820 crore owing to strong growth in demand.The profit though grew by just 6% to Rs. 130 crores from Rs 122 crores due sharp rise...
Worries over China overdone, recovery in progress – Fitch Fitch Ratings said in a new report that pessimism over China's short-term outlook is overdone and a growth pick-up in the second half is already in the pipeline.'But expectations for the economy's growth potential in the medium term are shifting lower as the scale of the res...
Cheap Chinese steel to continue to haunt Indian producers – Assocham Troubles within China are expected to spell disaster for the Indian steel industry as desperate Chinese manufacturers would dump their products more rigorously abroad, having already registered a growth of 232 per cent in their shipments to Indian ports, an ASSOCHAM study has...
Strong domestic demand widens the trade deficit in June The trade deficit widened in June, partly due to a rise in non-oil-non-gold (NONG) imports, a key indicator of domestic demand."Details within the import bill throws up two interesting developments - higher food imports to augment domestic supplies ahead of potentially we...
Indian trade forum Assocham to open an office in Iran The Associated Chamber of Commerce and Industry of India (ASSOCHAM), India's third biggest industry forum, today announced it will consider opening office in Teheran, immediately after global trade with Iran becomes normal following lifting of international sanctions. Yeste...
WTO confirms reciept of US complaint against Chinese export incentives The United States has filed a 'request for consultations' with China at the World Trade Organization regarding "certain measures that allegedly provide export-contingent subsidies to enterprises in several industrial sectors."The WTO said these sectors include textiles, a...
World’s longest fashion show to be held in Goa The world's longest fashion show will be held in Goa in August, and will go on for 100 hours (4 days) without a break.Over 100 fashion designers, about 1000 male and female models, 35 choreographers, 150 make up artistes, 100 stylists and 50 photographers are expected to par...
Modi Government could face Rupee problems as foreign inflows double – report Riding on huge expectations from the incoming Modi Government, global investors are gung ho on the Indian economy which is expected to see a doubling of foreign investment inflows- including FDI and FIIs- to above USD 60 billion in the current financial year than about USD 29 b...