Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities
apparel brand 2018-09-17

The Ongoing Challenges In The Indian Readymade Garment Exports Segment

The Readymade Garment Exports (RMG) experienced a drop in the first three months of current fiscal (April to June), declining by 16.57% to Rs 27,103 crore.

By Features Writer
The Ongoing Challenges In The Indian Readymade Garment Exports Segment

The Readymade Garment Exports (RMG) is continuing its declining journey, reaching 12.12% to $6.61 billion from $7.522 billion from April to August. The downfall is being recorded completely, with no good happening to the RMG industry.

The rising cotton prices, followed by GST and reduction in duty drawbacks have caused the RMG industry to face such challenge. After reporting 8% decline in FY18, the exports of readymade garments are still facing the same situation. The stats have fallen to 22.78%, 16.57%, and 12.45% respectively for the month April, May, and June 2018.

Factors affecting the downfall

Exporters claim the post-impact of GST, reduction in duty drawback, and remission of state levies are some factors which have affected the industry so badly. They believe that the new government initiatives can only bring some transformation in the current situation of the industry, which should be done at the earliest.

The negative trend in export has become one of the most worrying factors affecting the RMG industry.

Raja M Shanmugham, President, Tirupur’s Exporters’ Association said, “With the Government's initiatives, we expect to see the reverse trend this financial year.”  

Experts Opinion

Recently, the export fraternity met the Apparel Export Promotion Council (AEPC) discussing the ongoing challenges in the industry. But an announcement is yet to be made as they believe that it may negatively impact the relationship with their clients.

"A delay will drive our buyers to resort to Bangladesh, Vietnam, Ethiopia, Myanmar and once if they settle there it is difficult to bring them back immediately. Meanwhile, the season will go off with partial orders," the official said.

R Rajkumar, Managing Director, Best Corporations believe that most probably the next year would bring better fortunes for the RMG sector.

Comment
image
image
mobile
address
star franchise india
Related opportunities
  • Water Treatment & Purifying Plant
    About Us: Do it rite ways!  Rite Ways manufacture and sell the..
    Locations looking for expansion Karnataka
    Establishment year 2010
    Franchising Launch Date 2019
    Investment size Rs. 10lac - 20lac
    Space required 5000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • About Us: Our passion for food drives us continually to create..
    Locations looking for expansion Maharashtra
    Establishment year 2015
    Franchising Launch Date 2019
    Investment size Rs. 10000 - 50000
    Space required 50
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Haveli Maharashtra
  • Quick Service Restaurants
    About Us: Pangu Hospitalities Services Pvt. Ltd.is all set to become..
    Locations looking for expansion Delhi
    Establishment year 2018
    Franchising Launch Date 2019
    Investment size Rs. 20lac - 30lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Delhi Delhi
  • Quick Service Restaurants
    About Us: “Barottas” a new word in World Cuisine! A first..
    Locations looking for expansion Delhi
    Establishment year 2016
    Franchising Launch Date 2019
    Investment size Rs. 10lac - 20lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts

pincode
ads ads ads ads