Readymade garment exports (RMG) in the first three months of current fiscal (April to June) declined by 16.57% to Rs 27,103 crore as compared to Rs 31,594 crore in the same period of last fiscal.
Hit hard by rising cotton prices coupled with issues such as GST as well as reduction in duty drawback rates and return on state levies, the readymade garment exports (RMG) in the first three months of current fiscal (April to June) declined by 16.57% to Rs 27,103 crore as compared to Rs 31,594 crore in the same period of last fiscal.
After reporting a 8% decline in FY18 exports to Rs 1,07,679 crore, the exports of readymade garments continued to witness fall of 21.40% in April, 12.59% in May and 7.8% in June to Rs 8,860 crore (Rs 11,272 crore earlier), Rs 9,041 crore (Rs 10,343 crore earlier) and Rs 9,203 crore (Rs 9,980 crore earlier), respectively, according to an industry data for the first three months of current fiscal. In dollar terms, the decline in April, May and June 2018 was at 22.78%, 16.57% and 12.45%, respectively.
According to industry sources, the beleaguered knitwear export sector has been passing through a challenging business environment further to implementation of GST and this could be apparently witnessed from the continuous declining of knitwear exports on a month-on-month basis since October 2017 after three months transition period got over and the declining of exports for the second half yearly period of 2017-18 was 21%. The most worrying factor is that the negative trend in exports growth is continuing in the current financial year also.