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Ready-made garments (RMG) exports from India increased 11.9 per cent (year-on-year) to $1.26 billion in August 2024 despite the persisting Red Sea crisis and global headwinds pulling down overall goods exports.
Exporters are hopeful that the growth momentum will continue, as long-term policy support schemes focussed on garment exports and certain engagements with old FTA partner countries, like Japan and Korea, are starting to yield positive results.
“Apparel exports kept its growth momentum despite the global headwinds and persisting red sea crisis and other challenges such as logistic cost and global inflationGrowing at an average of 7.12 per cent in the last five months (April to August 2024-25) RMG exports have bucked the trends of falling merchandise exports which has touched 13 months’ low in August,” said Sudhir Sekhri, Chairman, AEPC.
Total RMG exports for April-August 2024-25 was $6.39 billion.
“I am hopeful that the growth momentum will continue. While the global garment sourcing is realigning itself, we are ready to play a significant role. The long-term policy support for garment exports related schemes will provide stability in the policy regime and will help further thrust garment exports from the country,” Sekhri said.
In its wishlist submitted to the government, AEPC has sought flexibility in fabric import, PLI 2.0 for capacity augmentation, an extension of the interest equalisation scheme for at least five years with an increased rate of 5 per cent for all exporters, an Urban Area Employment Encouragement Scheme, an incentive for ESG compliance, and a level playing field in important markets such as the EU.
” It is very encouraging to see the resilience of the industry. With focus on product quality and environmental and social compliance, the industry is poised to take a leap into high growth trajectory and be a major global player of garment exports,” Sekhri added.
One of the “most heartening” developments was the news that engagement with old FTA partner countries like Japan and Korea had also started yielding positive results, Sekhri said. RMG exports to Japan, Korea, Australia, Mauritius, and Norway grew by 7.7 per cent, 16.8 per cent, 12.5 per cent, 6.6 per cent, and 17.3 per cent, respectively, in the first quarter of this fiscal year.
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