Global brands are being forced by the looming recession in the US and Europe to engage in tough negotiations with Indian exporters. They want Indian apparel exporters to supply garments at the pre-Covid level prices. However, Indian exporters can’t give huge discounts despite the rupee weakening because cotton prices have not come down to the 2019 level. According to Narendra Goenka, Chairman, AEPC, from a high of Rs1 lakh per confection, cotton prices have decreased by 15 per cent and the following weeks are expected to see a further decrease.

Foreign purchasers are making aggressive offers to reduce the cost of clothing as a result of the rupee's depreciation against the dollar. The rupee has dropped to a new record low against the US dollar as a result of the increasing dollar index and economic concerns, with investors continuing to choose the greenback as a safe-haven investment. 

So, orders for spring 2023 that are built and transported between October and March will be impacted by the recessionary trend in the US and Europe. Indian exporters are expecting a reduction in export orders up to 10 per cent for spring 2023, which will harm their second financial year. They are now looking at newer markets like Japan, Latin America, and Australia to make up the predicted losses.