The weakening rupee against the dollar is expected to have a positive impact on the textile and clothing sector. As Sanjay K. Jain, Chairman, Confederation of Indian Textile Industry (CITI), noted, yarn exports to China increased 24 per cent between April and June. However, the Chinese yuan also weakened in the period and hence, Indian exports were affected.
As per Chandrima Chatterjee, Adviser, Apparel Export Promotion Council (AEPC), the weakening of the rupee this year compared to last fiscal will benefit garment exporters. The Centre is expected to reimburse embedded taxes and raise Reimbursement of State Levies, thus giving garment exports a push.
Apparel exports, which were almost stagnant for the last couple of years, are expected to do better. This will provide the garment producers cushion against increasing raw material prices. However, these producers will not benefit entirely as buyers are likely to demand rate cuts even in existing orders.
