India’s Textile Exports Show Positive Growth: exports grow 7%
India’s textiles and apparel sector is experiencing a notable surge in exports. Recent government data reveals that exports, including handicrafts, grew by 7% during the April-October period of FY24. The total export value reached $21.35 billion, compared to $20 billion during the same period last year. This growth reflects the resilience and potential of India’s textile industry in the global market.
Key Export Categories
The textiles ministry has provided insights into the various categories contributing to this growth. The ready-made garments category holds the largest share, accounting for 41% of total exports. This translates to exports worth $8,733 million. Following closely is the cotton textiles category, which represents 33% of total exports, amounting to $7,082 million. Man-made textiles also play a significant role, contributing 15% with exports valued at $3,105 million.
Despite the overall positive trend, some categories faced challenges. Wool and handloom products saw declines of 19% and 6%, respectively. However, the ministry remains optimistic about the future, noting that almost all principal commodities are experiencing growth. This indicates a robust demand for Indian textiles in the global market, which is crucial for sustaining the industry’s momentum.
Import Trends and Their Implications
On the import side, textiles and apparel imports, including handicrafts, saw a slight decline of 1%, totaling $5.43 billion. This figure is down from $5.46 billion in the previous year. Man-made textiles dominated imports, making up 34% of the total, valued at $1.86 billion. This trend highlights a demand-supply gap in the sector, prompting imports to meet industry needs.
The ministry attributed the growth in cotton textile imports to the rising demand for long-staple cotton fiber. This trend suggests an increase in production capacity within the country, driven by rising consumption and a push for self-reliance. For FY 2023-24, India’s overall imports of textiles and apparel stood at $8.94 billion, marking a significant 15% decline from $10.48 billion in FY 2022-23. This decline in imports could indicate a strengthening domestic production capacity.
India’s Global Standing in Textiles
India continues to hold a prominent position in the global textiles and apparel market. As of 2023, it ranks as the sixth-largest exporter worldwide. The sector accounted for 8.21% of India’s total exports in FY 2023-24. The United States and the European Union are the top export destinations, contributing 47% to the total exports. India holds a 3.9% share in global trade for textiles and apparel.
The textiles ministry emphasized that India enjoys a trade surplus in this sector. Most imports are for re-export or to meet the raw material requirements of the industry. This highlights India’s strategic role in the global supply chain, where it not only exports finished products but also serves as a vital source of raw materials for other markets.
Challenges Facing the Sector
Despite the positive growth in exports, the textiles sector faces several challenges. Geopolitical tensions, particularly in the Red Sea region, have disrupted export flows during the early months of FY 2024. These disruptions can impact order fulfillment and logistics, which are critical for maintaining export momentum.
Additionally, the export landscape is influenced by various factors, including global demand, domestic consumption, and order flow. The ministry acknowledges that these dynamics play a significant role in shaping the future of the textiles industry. Addressing these challenges will be crucial for sustaining growth and enhancing India’s competitiveness in the global market.
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