Owing to poor exports, the domestic readymade garment sales dip five per cent in FY12, at Rs 1, 10 lakh crore, according to economic times report.
As we recall, the previous year growth rate was as high as 15 percent. "The size of domestic stitched apparel market is estimated at around Rs 1, 10,000 lakh crore, and the un-stitched apparel market at around Rs 40,000 crore. The growth rate, which was around 15 percent a few years back, has now come down to 5 percent in FY12," Rahul Mehta, president, Clothing Manufacturers Association of India (CMAI) informed.
Mehta pointed out the overall drop is due to the recession in US and European markets where as much as 70 per cent of the organized readymades are exported.
"Liberal imports from Bangladesh and other countries are also affecting the growth of the domestic apparel industry," he added.
However, despite these adverse conditions, weakening of the rupee as well as extension of the interest subvention and the focus-product script schemes for another year will help the exports, Mehta said.
The country exports around Rs 70,000 crore worth garments across the world last year. In view of reviving the growth trend, the CMAI is organising the 55th National Garment Fair from July 9 here, which is dubbed as the largest-ever apparel trade show of the domestic market. The fair is expected to have a record number of 400 exhibitors representing 450 brands spread over 3, 50,000 sq.ft.