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India: Denim exporters cope with a drop in export orders


Denim manufacturers in Ahmedabad have seen their export orders dwindle in the second half of the 2022-23 financial year. Global disruption and rising costs have put pressure on denim businesses. Export orders for denim clothing and textiles had experienced a boost in the wake of the pandemic in the 2022 financial year but continued global strain is taking a toll on Ahmedabad’s industry.

Factors include the Russia-Ukraine war, depreciating currencies, and rising energy costs among other expenses have caused demand from markets such as the US, Europe, and the Middle East to drop, which has dented the pockets of Ahmedabad’s denim businesses. Production in the European Union reduced dramatically due to high energy costs.

Moreover, wage inflation in the west is also very high in addition to higher fuel costs. As a consequence, industrial capacities are grossly underutilized. This has impacted the procurement of denim from Gujarat. The second quarter is typically a dry season when demand drops. Geopolitical factors, coupled with a lean season, have amplified the adverse effect on orders. However, the premium segment of the market is faring better in the export market due to the fact that spending in the premium segment has not gone down.


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