With a stronger rupee appreciating against the U.S. dollar, more and more small and medium sized firms are laying-off their workers or shutting down their operations. Analysts predict that, more than half a million jobs are at risk. As exporters struggle to secure profitable orders, the export target of $25.06 billion seems to be an 'utopia'.
While the rupee has appreciated by 15%, currencies of other countries have not increased correspondingly. With the western market slackening and discounts being demanded by the U.S. retailers, Indian exporters are being squeezed.
Exporters believe that they have not received adequate aid from the Government, and are demanding more sops. They argue that India does not have bilateral agreements with US, and EU, its largest markets while several other countries possess this strategic advantage. .
Some large textile firms are even launching their own apparel brands in the Indian market, following the examples of Raymond and Arvind Mills. Such strategy throws up a different set of challenges.
Attracting the customers to their brands will not happen overnight, since it is time consuming exercise. The saving grace is that the textile companies may have a better chance of building a brand that connects with Indian consumers than one that connects with consumers overseas.
Source : www.fibre2fashion.com