Business

Textile and clothing exports drop in FY20

Sector bats for stimulus package

Textile and clothing exports have dropped 6% during the 2019-2020 financial year, with a major fall in March.

According to data available, textile and clothing exports in 2018-2019 were worth $35.9 billion and from April 2019 to March 2020 it was worth $ 33.8 billion.

In March 2020, exports fell 32.2% compared with the same period last year. Apparel exports, which were about $16.1 billion in 2018-19, fell almost 4% to $15.4 billion, with the March exports alone dropping almost 35% compared with the same month last year.

COVID-19 impact

The fall in exports is because of the impact of COVID-19. In April, it is expected to be worse. However, demand is expected to rebound in July, said A. Sakthivel, chairman, Apparel Export Promotion Council. There will be several opportunities then, he said. Apparel exports had grown only during four months during the last financial year and this is because the industry did not get benefits under several schemes meant to promote exports, he said.

According to Siddhartha Rajagopal, executive director, Cotton Textiles Export Promotion Council, businesses are expected to be pick up after September. Textile and apparel exports started feeling the impact of COVID-19 in February. Till then, the industry was hopeful that the year would close on a par with the previous financial year.

Each country is in different stage of controlling the spread of the virus. Businesses will start getting orders again depending on which country they are supplying to. For instance, nearly 50 % of home textile exports go to the U.S. He also said a special stimulus package was needed from the government to help the industry get back on track, he said.

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jul 2, 2020 10:15:31 PM | https://www.thehindu.com/business/textile-and-clothing-exports-drop-in-fy20/article31359451.ece

Next Story