Several international clothing brands are planning to increase their retail prices in India due to the depreciation of the Indian rupee.

Amit Gugnani, Senior Vice President, Technopak Advisors stated that many international brands/retailers in India import a large part of their garments, and the depreciation of rupee has increased the import costs by up to 10-15 per cent. Hence, many global brands/retailers are planning to pass on this cost to the consumer.

The rupee has fallen by more than 15 percent in the past few months and it touched a record low of Rs. 69 to the dollar, surpassing its previous low of 56.52.

However, most of the brands do not have sufficient volume to justify local sourcing and also the competence of local vendors may not be up to the mark.

Most brands had increased their prices last year due to levy of excise duty on branded garments. However, this year excise duty impact on brands has been reduced and also cotton prices have declined substantially.