In fiscal year 2009-10, clothing exports in India dropped by 2.64% to $10 billion 640 million, while exports in the fiscal year 2008-09 amounted to $10 billion 930 million.

In the first two months of the current fiscal year, India's clothing exports decreased by 5.23% compared with the same period last year.

"The reality is that we are becoming a high cost economy, and clothing is very sensitive to prices," said PAM al Dany, President of the India garment export promotion association.

At the retail level in the US and Europe, prices have not risen in the past 5-10 years, and we can not control our prices.

Therefore, buyers are turning to other cheap or cost-effective countries, such as Bangladesh, Vietnam and other countries.

In terms of exports, Bangladesh exported 30% more clothing than India, Udani said.

Youni added that the increase in prices of raw materials (cotton and yarn) should also be a factor of condemnation.

Udani said: "our shipment in May was made in February and March, when raw material prices began to climb.

We believe that in June, we will see a similar situation.

The increase in tariffs on oil products has also made India's apparel dollar competitive in the world market.

The India Garment Export Promotion Council asked the government to provide support for higher tariff rebates to offset India's cost disadvantage.

They also asked the government to implement the India EU free trade agreement more quickly.

"This free trade agreement has the potential to increase India's textile and clothing exports to the EU market by US $3 billion," he said.

There will be an additional 2 million 500 thousand jobs for our economy. "