India's garment exports to Europe increased 5.9 per cent year-on-year from January to May 2013, whereas that of China and Bangladesh declined. India’s apparel exports are up, driven by demand from major textile importing countries like the US and Europe. For overseas buyers, India has now become a favoured destination over China and Bangladesh.

The fall in the rupee has increased Indian apparel exporters competitiveness. China is facing the issue of higher labour costs, which is also impacting its pricing and working in India’s favour. The Chinese yuan has also increased against the dollar, which has also caused China to lose its competitive edge.

Orders from Europe have gone up by 15 per cent compared to last year with a revival in demand. Even the US has increased their orders compared to last year this festive season (Christmas). Exporters are also seeing good demand coming in from the Middle East as well as Japan. India has also started exporting to Latin America, Russia, Australia to increase exports.

Exports have also improved as garment manufacturers have tapped newer geographies such as Middle East, Latin America, Japan, Russia and Australia. Most exporters are running on full capacity and also outsourcing manufacturing on a job work basis as order books are growing ahead of the peak festive season that falls in December.