By IETeam India’s textiles and apparel sector has demonstrated resilience amid global economic challenges, recording a 7% increase in exports during the April-October period of the fiscal year 2023-24 (FY24). According to data released by the Ministry of Textiles, exports, including handicrafts, reached $21.35 billion, up from $20 billion in the same period the previous year.
Key Contributors to Export Growth
The ready-made garments (RMG) segment emerged as the largest contributor, accounting for 41% of the total exports. This segment achieved exports worth $8.73 billion during the April-October timeframe. Following RMG, cotton textiles contributed 33% ($7.08 billion), and man-made textiles accounted for 15% ($3.10 billion) of the total exports. Notably, most principal commodities within the sector experienced growth, with the exception of wool and handloom products, which saw declines of 19% and 6%, respectively.
Import Trends and Domestic Production
On the import front, there was a slight decline of 1%, with textiles and apparel imports, including handicrafts, totaling $5.43 billion during the same period, compared to $5.46 billion in the previous year. Man-made textiles dominated imports, constituting $1.86 billion (34%) of the total imports, primarily due to a demand-supply gap in this sector. The increase in imports of certain raw materials, such as long-staple cotton fiber, indicates a rise in domestic production capacity and consumption, aligning with the country’s goal of self-reliance in the textile industry.
Global Standing and Trade Dynamics
India maintains its position as a significant player in the global textiles and apparel market, ranking as the world’s sixth-largest exporter in 2023. The sector contributed 8.21% to India’s total exports in FY24, with the United States and the European Union being the top destinations, collectively accounting for 47% of the exports. India holds a 3.9% share in global trade for textiles and apparel, reflecting its substantial role in the international market.
Challenges and External Factors
The Ministry of Textiles acknowledged that export growth earlier in FY24 was impacted by geopolitical tensions in regions such as the Red Sea, which disrupted export flows during the initial months of 2024. Additionally, the sector faced challenges related to global demand fluctuations, domestic consumption patterns, order flows, and logistics. Despite these obstacles, the sector’s performance during the April-October period indicates a recovery and adaptability to changing global economic conditions.
Future Outlook
The Indian government has set ambitious targets for the textile and apparel sector, aiming to achieve $100 billion in exports by 2030. To support this goal, initiatives such as the Production-Linked Incentive (PLI) scheme are being expanded to include small and medium-sized textile firms, encouraging increased production and export capacity. Furthermore, the industry is focusing on diversifying its product range, enhancing quality, and exploring new markets to sustain and accelerate export growth.
Conclusion
The 7% growth in India’s textiles and apparel exports during the April-October period of FY24 underscores the sector’s resilience and potential for further expansion. While challenges persist, strategic initiatives and government support are poised to bolster the industry’s global competitiveness, contributing significantly to India’s economic growth and employment generation in the coming years.