India's garment exports are likely to decline due to high inflation and risk of recession

Mumbai: Due to high inflation and risk of recession, India's garment exports will continue to decline for a few more months, but due to the depreciation of the rupee and a good cotton crop, the industry will see some relief. Due to declining demand from Europe and America, exports have decreased by twenty percent in the last few months, said the industry. sources said.

Exports are likely to see a decline till the end of the current financial year, but the fall in revenue for garment exporters will be limited due to the strength of the dollar against the rupee.

Garment exports declined in the second quarter of the current fiscal year, but export earnings rose 11 percent year-on-year to $8.12 billion.

A free trade agreement with the UK is expected to be favorable for the country's garment exporters, an exporter said. He expressed the expectation that the cost of production of garments in Bangladesh and Vietnam, two of India's main rivals, would be beneficial for exports, and the depreciation of rupee in India would be beneficial.

In the current year, the production of rupees is estimated to increase to 350 to 360 lakh bales. Due to this, rupee prices are expected to remain low.