As per ICRA analysis, India’s apparel exports are expected to grow at a modest pace of 1-2 per cent year-on-year for the rest of FY19 vis-a-vis a sharp degrowth of 14 per cent y-o-y in 4M FY19. This would mean a 4 per cent y-o-y decline in the country’s apparel exports in FY19, the fourth consecutive weak year for India’s apparel exports, following the 4 per cent degrowth in FY18 and modest growth rates of 1 per cent and 3 per cent in FY16 and FY17, respectively.

India’s apparel exports have exhibited an discouraging trend, with a marginal de-growth of 1 per cent in FY18 as well as 4M FY19, even after adjusting for apparel exports to the UAE, which have declined inexplicably and sharply over the past one year. Growth of apparel sector in India is being constrained by the challenging of the export subsidy schemes by the US at the World Trade Organisation.