India's garment exports to decline 30-35% in FY21: Crisil Research

In March quarter, India's garment exports slipped 16 percent, while the fall was a drastic 91 percent in April, the report said.

PTI

May 22, 2020 / 16:36 IST

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India's garment exports are likely to decline by 30-35 percent this financial year due to COVID-19 pandemic, which has rendered many people jobless in major export destinations, including the US and Europe, according to Crisil Research.

The US and the European Union, which together account for 64 percent of India's readymade garment (RMG) exports, are staring at a recession, Crisil Research said in a report, adding that the US is the worst-infected country now, and the pandemic-driven lockdown has ripped many apparel retailers there.

Besides, a spike in unemployment and fall in personal incomes would cut spending on apparel, it said.

In March quarter, India's garment exports slipped 16 percent, while the fall was a drastic 91 percent in April, it said.

"We expect readymade garments exports to dive 30-35 percent this fiscal," the report added.

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