Mumbai: India’s apparel exports to the US declined by 4.8% year-on-year in December 2016. Decline is claimed to be an outcome of demonetization as well as the rising support for protectionism in Europe and the US owing to the backlash against globalization.
Despite a decline in export value, India’s market share expanded by 10 basis points to 4.%. However, the country maintained its position as the sixth largest apparel exporter to the US. While the demonetization became effective on November 9, apparel trade data showed that exports grew at a much slower pace than imports. The decrease in India’s export value was solely ascribed to a fall in export realisations. During the month, export realisation dropped by 7.4%. However export quantity grew by 2.8%.
Among the top six apparel exporting countries to the US, only Vietnam and Mexico registered a growth in apparel exports. Vietnam’s apparel exports to the US increased by 4.2%. The country’s market share expanded by 150 basis points to 13.9%. Mexico’s exports grew by 9.4%, while its market share expanded by 70 basis points to 4.7%.