India's textile exports declined by 16.3 per cent to $34.4 billion in the fiscal year 2023-24 from $41 billion in fiscal year 2021-22.
Among the various segments within the textile sector, exports of cotton yarn, fabrics, made-ups, and handloom products increased to $740 million in 2023-24 over the previous year, due to a rise in the exports of cotton yarn, according to data from the NIRYAT portal of the Union Ministry of Commerce and Industry.
Exports to North America led at $11 billion, followed by Europe at $10 billion, and West Asia and North African countries at $4 billion.
Israr Ahmed, Vice President, Federation of Indian Export Organisations (FIEO), said, the exports were mainly affected by the impact of geopolitical tensions on the global economy.
The impact of the persisting Red Sea crisis resulted in escalating sea freight by about 100 per cent along with a substantial increase in air freights of up to 200 per cent. Constituting 42 per cent of combined textile exports, RMG exports declined by 10 per cent in FY24 compared to the previous year.
Mithileshwar Thakur, Secretary-General, Apparel Exports Promotion Council (AEPC), expressed optimism regarding a potential recovery. He cited recent improvements in the past few months and anticipated benefits from Free Trade Agreements (FTAs) signed between India, the UK, and the EU. Thakur also mentioned government initiatives such as the Production-Linked Incentive (PLI) Scheme and PM MITRA Park, aimed at enhancing production capabilities in the textile sector.
However, the textile hub of Tirupur experienced a notable decline in exports from $4 billion in FY22 to $3 billion in FY24. Raja M Shanmugam, Former President, Tiruppur Exporters Association, attributed this decline to reduced demand for value-added garments in the US and Europe. He emphasised, government support is necessary to prevent Micro, Small, and Medium Enterprises (MSMEs) from exiting the sector. He also proposed initiatives such as the Government Emergency Credit Line Guarantee Scheme and moratoriums on dues for six months.
