If the China’s currency Yuan continues to witness a downfall then industry experts are of the opinion that since China and India share common export markets such as the US and EU, Indian exports may be hit. Till December 2015, India’s apparel exports have witnessed a growth rate of 7-8 per cent against the anticipated 13-15 per cent.
Much of the fall in exports growth rate is being attributed to decline in Indian apparel exports to markets like China, Europe and the US due to overall economic slowdown. Now further downfall of Chinese yuan is expected to put a burden on Indian exports since the former would be able to offer products at a lower cost. Of the total $40 billion worth textiles and clothing (T&C) exports from India, apparel exports are worth $16 billion, while yarn, fabric and made-ups put together amount to $21 billion.
Over the last decade, India’s share in global apparel exports has remained modest at 3 to 4 per cent, according to ICRA report, despite being one of the world’s largest cotton producer and manufacturer of man-made fibres with world’s second largest spinning and weaving capacity.
www.icra.in
