Textile exports from India declined by 4.2 per cent Y-o-Y in the initial 11 months of the current fiscal year, owing to challenging economic conditions in key markets like the European Union (EU), the US, and West Asian countries, as per data from the Commerce Ministry. The figures reveal a drop from $32.33 billion to $30.96 billion in textile exports during April 2023 to February 2024 compared to the same period in the previous fiscal year.
Specifically, RMG exports decreased by 11.4 per cent to $13.05 billion, while jute exports declined by 22.5 per cent to $310 million. Yarn exports declined at a lower rate of 5.3 per cent to $4.23 billion during the 11-month period until February.
Despite these challenges, industry experts anticipate a potential improvement in exports in the coming months, particularly with signs of recovery in the US market. CRISIL projects growth in India's textile industry in 2024, driven by rising domestic demand, gradual export recovery, and favorable cotton prices.
Anand Ramanathan, Partner, Deloitte India, highlighted the importance of exploring alternative markets in the East, such as Japan and Korea, and leveraging India's expertise in natural fibers and cotton. Additionally, he emphasised opportunities in the luxury sector due to its relative immunity to economic fluctuations and India's rich heritage in weaving and embroidery.
Main buyers of Indian ready-made garments predominantly come from European nations, notably Germany, the Netherlands, Italy, Poland, and Denmark.
The ongoing targeting of ships in the Red Sea by Yemen's Houthi militants has further exacerbated the situation, leading to higher shipping costs for Indian exports due to rerouting from Africa. Approximately 95 per cent of vessels have diverted around the Cape of Good Hope, resulting in extended journey times.
Despite these challenges, India remains the world's sixth-largest exporter of textiles and apparel, with the sector contributing significantly to the country's GDP, industrial production, and exports.
According to the body established by the Ministry of Commerce and Industry, Indian Brand Equity Foundation, Currently growing at a CAGR of 14.59 per cent, India’s textile and apparel market expected to reach $387.3 billion by 2028 from $172.3 billion in 2022.
