Bucking the trend amid persisting global challenges, the country’s ready-made garment (RMG) exports grew 11.9 percent in August compared to last year. The cumulative RMG exports for April-August stood at $6,395 million (about $6.4 billion).
According to the Apparel Export Promotion Council (AEPC), apparel exports maintained their growth momentum despite global headwinds, the persisting Red Sea crisis, and other challenges such as logistic costs and global inflation.
Sudhir Sekhri, Chairman of AEPC, said that growing at an average of 7.12 per cent in the last five months (April to August 2024-25), RMG exports have bucked the trend of falling merchandise exports, which touched a 13-month low in August.
“It is very encouraging to see the resilience of the industry. With a focus on product quality and environmental and social compliance, the industry is poised to leap into a high growth trajectory and be a major global player in garment exports,” he mentioned.
In recent months, RMG exports have demonstrated an extremely positive trend. The recent surge in RMG exports is a testament to the increasing trust global brands have started reposting in India-made products.
“Our exports to Japan, Korea, Australia, Mauritius and Norway have grown by 7.7 per cent, 16.8 per cent, 12.5 per cent, 6.6 per cent and 17.3 per cent, respectively, in the first quarter of this fiscal year,” said Mithileshwar Thakur, Secretary General AEPC.
To further promote growth, the Council has asked the government for flexibility in fabric import, PLI 2.0 for capacity augmentation, an extension of the interest equalisation scheme for at least five years with an increased rate of 5 per cent for all exporters, an Urban Area Employment Encouragement Scheme, an Incentive for ESG compliance, and a level playing field in important markets such as the EU.
The labour-intensive sector can harness India’s demographic dividend. Hence, the government needs to give it the right push and support, especially when the world is looking for options to switch its sourcing from conventional destinations due to changing geopolitical considerations, said the AEPC.
–IANS
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