MUMBAI: India has lost over a third of its apparel and garments exports to the UAE in FY19, due to the 5 per cent import duty levied by the Gulf nation to restrict trading activity and encourage local manufacturing.

 “Indian exporters were using the UAE as a gateway for apparel shipment to the Middle Eastern countries, Africa and Europe. However, the UAE Government levied import tax a few months ago on all merchandised products, including apparels. On the contrary, apparel exports to the US and Europe are increasing. Therefore, the decline in apparel exports to the UAE was majorly compensated for,” said 

H K L Maghu, Chairman of the Cotton Textile Export Promotion Council (Texprocil).

According to industry sources, Indian exporters enjoyed a robust banking system between the UAE and African countries. Now, individual countries in Africa have developed their own strong banking systems.

“Thus, India’s direct apparel exports to African countries have improved. With this, India’s direct shipments of apparels have jumped significantly to African and European countries, at the expense of the UAE. This trend is likely to continue,” said Rahul Mehta, President of the Clothing Manufacturers Association of India (CMAI). Direct shipment to consuming countries, however, leads to lower delivery time, said Mehta.