The clothing exporter's community is facing a dilemma, other than that of global recessionary trends, which has affected their business to a great extent. Export credit insurance companies are refusing to provide these exporters, insurance cover.
The insurance companies on their part are alleging that bankruptcies across the globe have increased drastically and there has also been a steep rise in rate of defaults by importers of clothing, which has forced them to go slow on credit insurance.
Export growth of apparels has been falling with regularity since the last few months. Shipments from the sector touched $10.17 billion during 2008-09, against a target of $11.62 billion and have also dipped by more than 15 percent in the first quarter of 2009-10.
Fibre2fashion News Desk - India
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