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| Photo Credit: S. Siva Saravanan
Steep decline in exports and depressed demand each domestically and globally, have led to greater than one-fifth decline (22.6%) in India’s garment manufacturing between April and August this 12 months compared with the identical interval in 2022. Manufacturers mentioned textiles additionally witnessed a decline of just about 2% in the identical interval in comparison with final 12 months.
Data obtainable with the Confederation of Indian Textile Industry (CITI) on the Index of Industrial Production for textiles and clothes reveals that textile production improved barely (1.6%) in August, although there was a decline in the cumulative index for April – August. While “wearing apparel” (which means clothes), index dropped 17.1% in August and 22.6% throughout April-August 2023 as in opposition to the corresponding interval final 12 months.
However, textile exports grew 11.06% in September 2023 over the earlier 12 months whereas attire exports registered a decline of 11.23% final month.
A textile exporter close to Coimbatore, who didn’t want to be recognized, attributed a number of causes for this decline in manufacturing and exports. He mentioned the Quality Control Order lately launched by the federal government, which mandates a Bureau of Indian Standards certification for man-made fibre, together with these which can be imported, has led to steep decline in exports as textile producers are unable to supply these uncooked supplies as per the federal government’s specs in the worldwide markets.
KM Subramanian, President of Tiruppur Exporters’ Association, mentioned most garment exporters have lowered staff’ shifts, or, accomplished away with additional time production. “There is production loss but no job loss,” he mentioned. The latest announcement of a downside in responsibility hikes is anticipated to assist revive exports, mentioned Mr. Subramanian
Clothing Manufacturers Association of India (CMAI) Chief Mentor Rahul Mehta mentioned, “The domestic market is slow since mid-March”. Mr. Mehta added, “sales during the festival season will be higher than August-September. But compared with last year, the growth is expected to be flat”. He mentioned the marriage season after Deepavali may witness an uptick in gross sales. However, Mr. Mehta warned that “if the low production trend continues for another couple of months, there will be job losses”.
