India's apparel exports to UAE decline 33% on higher import duty

India's overall exports of apparel or readymade garments were marginally lower at $16.1 billion, compared to $16.7 billion a year ago, according to data from the commerce ministry

India has lost over a third of its apparel and garments exports to the UAE in FY19, due to the 5 per cent import duty levied by the Gulf nation to restrict trading activity and encourage local manufacturing.

Data from global consultancy firm Wazir Advisors suggests India’s cumulative apparel exports to the UAE declined by a steep 33 per cent to $1.78 billion from April 2018-February 2019, versus $2.66 billion in the corresponding period last year.

As a matter of practice, exporters were shipping their consignments to the UAE for repackaging and distributing to neighbouring countries.

“Indian exporters were using the UAE as