India’s readymade garment exports are expected to cross 30 billion dollars by 2027. So says CareEdge Ratings.
Trade agreements with key nations and the declining share of China in the readymade garment market are likely to benefit India as its exports are expected to grow at a compound annual growth rate of 13 per cent.
Having adequate raw material and a large labour workforce, India is well poised to grab the opportunity in the global readymade garment market. India has a very good presence across the cotton textile value chain from fiber to fabric, while it has a limited presence in manmade fiber, which is expected to get a boost by the expected free trade agreement with the UK and the PLI scheme.
Further, having a presence across the entirevalue chain reduces transportation costs and lead time, thereby providing a cost effective solution to customers.
So by 2027 India can have a 4.9 per cent share in world garment exports as against the current share of around three per cent.India’s share in global garment exports has remained sluggish from 2017 to 2021. Countries such as Bangladesh and Vietnam have captured a large part of China’s declining share in global garment exports.