India’s apparel exports in November 2022 rose by 11 per cent. Exports of readymade garments from India witnessed a rough patch in the past few months since most of the traditional markets such as the UK, the EU and the US have been witnessing recession and global headwinds, leading to falling demand in these countries.Inflation and rising costs of raw material and freight, aggravated by the Russia-Ukraine war, added to the burden of exporters.

However, after a few months of slipping, readymade garment exports have again turned positive signaling the resilience of the industry to adjust to the prevailing challenges. Exporters have flagged certain issues such as the production-linked incentive scheme for apparel, extension of ATUFS (Amended Technology Upgradation Fund Scheme), RoSCTL (Rebate of State and Central Levies and Taxes) disbursements through bank transfer, and one time relaxation on account of bankruptcy / insolvency / discounting / cancellation of export orders.

India’s readymade garment exports may see a compound annual growth rate of 12 per cent by 2027.This will help India achieve an ambitious textile export target of $100 billion by 2030.With a level-playing field due to trade agreements, India’s share in the UAE and Australian markets could rise and the free trade agreement with the UK likely to be completed in 2023 will be a game changer.