The United Kingdom and Japan’s economies likely weakened during the final three months of 2023. For each, it would be the second straight quarter that has happened, which fits one lay definition for a recession.
Japan has been eclipsed by Germany as the world’s third-biggest economy and has slipped into recession.
Both the nations are important destinations for Indian apparel exporters but many Indian exporters are hopeful that there will be no immediate negative impact of the lowered sentiments.
It is worth mentioning here that Japan is a major market for many Jaipur-based apparel exporters.
“Whatever latest developments are there at the economy front in Japan, I don’t see that apparel export will be further down as Japanese stores or buyers don’t have much of stock with them. In coming months apparel export should remain normal to Japan,” says Dalpat Lodha, Chairman, Lodha Impex, Jaipur who is one of the leading apparel exporters in India.
He is also hopeful that Jaipur’s overall business should not have much impact of Japan’s economic developments.
Another leading apparel exporter, Naren Goenka, MD, Texport Industries Ltd., and Ex. President of Apparel Export Promotion Council (AEPC), also has a similar opinion, that recent developments in UK and Japan will have further negative impact on Indian apparel.
Post –Covid, retailers and brands are very careful about the business scenario and it is being said that whatever recessionary trends are there, will have a very short impact.
There are reports that UK retail sales surged by 3.4 per cent in January after sliding by 3.3 per cent in December. Economists forecast retail sales to increase by 1.5 per cent in January.
UK is a major market for many apparel exporters across Delhi-NCR, Bangalore and Tirupur.
Not only UK and Japan, but the US, a highly important market for Indian apparel exporters is also seeing negative developments.
US has concluded 2023 with US $ 77.84 billion worth of apparel imports, noting 22.05 per cent yearly decline. The country has witnessed a loss of US $ 22 billion as imports in 2022 had been valued at US $ 99.85 billion.
All major Asian manufacturing destinations saw significant decline in their exports to the US including India, Bangladesh, China, Vietnam, Indonesia and Pakistan.
Also Read: Textile and apparel exports fall in January
