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.However, challenges from competing nations such as Bangladesh and Vietnam remain as they have gained market share to some of the major export markets due to duty-free access amid China’s decline.
Indian readymade garment exports have been stagnant for the last five years. For instance India’s textile exports fell 41 per cent yearonyear in October 2022. Apparel exports declined by 21 per cent.Cumulative exports of textiles and apparel during October 2022 fell 34 per cent as compared to October 2021.During April 2022 to October 2022, textile exports fell by 20 per cent.
However, apparel exports grew by six per cent during the same period.Cumulative exports of textiles and apparel during the first seven months of the current fiscal were down ten per cent. The share of textiles and apparel in India’s total merchandise exports declined to seven per cent in October 2022 as compared to nine per cent in October 2021.