Free trade agreements signed between major importing countries and manufacturing countries form a major challenge for Indian clothing exporters. Exports have recently moved back to the positive zone after two years.
Export incentives are still crucial to enable Indian clothing exporters to gain a larger share of the global apparel trade, but recent measures announced by the central government have provided some help.
Exports fell for the last two consecutive years, but clothing exports increased by 4 per cent in the last four months of this financial year.