Garment export orders from Tirupur -- the knitwear hub of India -- have dropped 20 per cent so far this fiscal, falling short of the estimated Rs 12,500 crore due to the slowdown in major overseas markets.
The total decline in export orders from the US and European markets would be around 20 per cent in the first nine months of the current fiscal, Tirupur Exporters' Association President A Shaktivel told PTI quoting rough estimates.
A sizeable number of exporters from Tirupur have long been waiting for payment from overseas buyers, who have reportedly turned insolvent, sources in the Export Credit Guarantee Corporation of India (ECGC) said.
Shaktivel said that exporters impacted by the appreciating rupee last fiscal to Rs 38, had heaved a sigh of relief, as "things started settling well, with the dollar moving up".
Readymade garment exports, which were over Rs 11,000 crore the previous year had suddenly dipped to Rs 10,000 crore due to dollar depreciation and in the third quarter, the export target was fixed at Rs 12,500 crore, he said.
"However, as a bolt from the blue, the recessionary trend hit the US, followed by European markets, which had a great impact on Indian exports," he said.
