There has been a drastic 10.4 per cent decline in apparel production in India from April 2017 to January 2018. However, a 1.3 per cent growth was reported in apparel production in April 2017 which again saw a five per cent decline in the following month. June too witnessed a 3.2 per cent decline while July, August, September, October, November and December recorded a 5.1 per cent, 6.4 per cent, 7.2 per cent, 11 per cent, 13.1 per cent and 13.5 per cent decline respectively.
The decline has surfaced at a time when exports are already registering a weakening trend. A 14 per cent decline was seen in exports since January onwards. The industry is already struggling due to blocked funds which have resulted in delays in payments to the supplier on time. Suppliers too do not prefer advance as they cannot carry them for an indefinite period which ultimately resulted in a decline in apparel production.
Delays in RoSL disbursements and IGST refunds all have added to the woes of industry players. This situation would lead to difficulties in meeting the export target of $20 billion.