With an economic slowdown looming large on the United States and appreciating Indian national currency rupee, Indian garment export is at the receiving end, according to the Confederation of Indian Apparel Exporters.

Exports of readymade garments (RMG) declined by 14% during April-December period in 2007. The exports to European Union also fell by nearly 4% as most of the volume business has gone to Bangladesh, which gets duty-free facility.

The impending economic recession in the US and present competition from Bangladesh and Vietnam, where cost of production is believed to be 20% lower than that in India, are major concerns for Indian garment exporters.