India's apparel exports dropped 3.46% in 2018-19 compared with the year-earlier period, mainly because exporting units took time to adjust to the new rates under the Goods and Services Tax (GST).
Apparel exports during last financial year were worth $16.13 billion compared with $16.71 billion in the year-earlier period. However, in rupee terms, the exports grew 4.66 %.
Under the GST, there was almost 7% reduction in the incentives that the exporters were receiving earlier and they also had to adjust to the new system, the Apparel Export Promotion Council (AEPC) said, The Hindu reported.
Export of overall cotton textiles, including cotton yarn, rose almost 10% last financial year compared with the year-earlier period. Apparel exports, too, surged 15% in March after the Centre announced reimbursement of embedded taxes. This should give a boost to exports this year, the Cotton Textiles Export Promotion Council (TEXPROCIL) said.