In the first month of the fiscal 2015-16, export earnings dipped by 11.96 per cent compared to the same month in the last FY. This was because the garment product exports dropped. According to Export Promotion Bureau data, export earnings for $2.62 billion in July of FY16 as against $2.98 billion in the same month of the previous fiscal.

Following a disappointing FY 2014-2015 when export earnings grew by just over 3 per cent, negative growth in July was a worrying sign for the RMG sector, say exporters. It is all the more worrisome as a negative earnings growth of 1.37 per cent registered in July last year was the basis of negative earnings growth in this July.

Murshedy says the main reasons for low figures is: loss of orders due to rise in wages, additional cost for compliance issue, higher transportation cost compared to other countries as the government is yet to reduce oil prices, and a slump in dollar and euro.