Impact of global recession on the Export performance of apparel Industry in tirupur

Abstract

Export sector is the pivotal sector for developed economies in the world and has newlinebeen profoundly adopted by developing countries like China South Africa Brazil newlineIndonesia Pakistan and India since 1980s The year 2008 09 witnessed much turbulence newlinein the economic activities of globe due to the US led recession also called as Great newlinerecession The Indian economy was doing well before the global recession reaching 9 6 newline GDP growth in 2006 07 which became 9 3 and 6 8 in 2007 08 and 2008 09 newlinerespectively due to the global financial crisis and global recession newlineThe share of textile export as against India s total export of all commodities newlinehas declined to 10 40 from 10 53 during April Dec 2012 as against April newlineDec 2011 For Indian readymade garment industry the major destinations are USA newlineUK Germany France UAE Italy Netherlands Spain Canada and Saudi Arabia In newline2008 USA Germany and France collectively accounted for 50 of India s RMG newlineExports The Indian apparel industry is no longer feeling buoyant with exports newlinefalling sharply following weak demand in the US The readymade garment industry newlinein India felt the heat of global turmoil as the apparel export fell 6 59 in September newline2008 compared to the previous year as a direct consequence of the global economic newlineslowdown newline newline