Business

Readymade garment manufacturers await gains with plunge in rupee

While the rupee meltdown is affecting various sectors, readymade garment sector is looking forward to benefit with the plunge in the rupee.

The Indore garment traders saw a rise of 20% in fresh orders in the last two months. However, raw material prices and labor costs are a cause of concern for the textile manufacturers in Indore.

According to garment exporter Singhal, of Akash Apparel, Indore, “Raw material rates have gone up in the past six months. Cotton prices have seen a rise by 15-20%, fabric rates too have gone up and will further continue to rise in the coming months.”

Textile manufacturersare facing the heat because of high labor costs and hike in raw material prices. “The slide in rupee is good for exporters but the market is not competitive because of various other factors.”

Exporters are benefitting but at the same time, there is a stiff competition from China even now, said Singhal.