Garment exports shrink 30% as slowdown hits Europe, US

Garment exporters are feeling the heat of economic slowdown in Europe and the US with exports falling as much 30% and reducing capacity utilisation.

The economic slowdown has affected all the garment exporting countries, but the impact is more on India because of traditional inefficiencies.

Export-oriented units are operating on Average at around 70% of capacity.

Reduced tax on buying latest machines, skills development in the sector, easy availability of raw materials and creating centre of excellencies are some of the major points to be looked for.