The share of apparel and textiles among the total merchandise exports of India declined to eight per cent in December 2022 from nine per cent the previous year.

Total exports of apparel and textiles contracted almost 11 per cent for April 2022 to December 2022. These exports shrank 21 per cent in December 2022 and shipments of handlooms, cotton yarns and fabrics declined by 40 per cent year on year in December 2022.

High cotton prices are probably one of the major reasons for the decline in exports. One industry opinion is that if the import duty on cotton were to be removed this will enable India to stay competitive in the global trade of apparel and textiles. However, exports of readymade garments showed a marginal growth of one per cent in December 2022 compared to the earlier year. Readymade garment exports in December 2022 were higher by ten per cent year on year compared to exports in December 2021.

Garment exports from India to Australia are likely to see a jump of 30 per cent as a result of the free trade agreement. Various Indian products, including textiles and apparel, will have preferential market access to the Australian market with zero customs duty.