Indian textile exports have increased 4.15% in the first quarter of the current fiscal year, driven by rising demand from Commonwealth of Independent States (CIS) and South Asian markets.
According to the latest data from the commerce ministry, textile exports grew to $8.78 billion in the first quarter of FY25 compared to $8.43 billion in the same period last year.
This assumes importance given that the domestic apparel and textile industry contributes about 2.3% to the country’s GDP, 13% to industrial production, and 12% to exports. India is the world’s sixth largest exporter of textiles and apparel.
The CIS region, including nations like Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, recorded a growth of 113.33%, increasing to $64 million in the quarter compared to $30 million in the corresponding months of the last fiscal year.
South Asia also saw a significant increase of 35.65%, reaching $898 million.
Exports to Latin America increased by 15% to $346 million in the first quarter due to strengthened trade relations and rising demand for Indian textiles in Latin American markets.
However, regions like North East Asia (NEA) and Africa witnessed a decline in exports, highlighting the need for strategic adjustments to address market-specific challenges.
Textile exports to NEA contracted by 28%, decreasing to $298 million in the first quarter. Similarly, exports to Africa contracted 15.74% to $423 million.
“The first quarter of FY25 is showing some upward movement in the exports of apparel, which is a welcome departure from the downward trends observed in the last couple of years,” said Rahul Mehta, chief mentor, Clothing Manufacturers Association of India (CMAI).
“This is largely due to the slightly improved sentiments in the US economy as well as the shift desired by buyers from China and Bangladesh,” Mehta said.
However, one must keep in mind that the growth is minimal and on a low base, he said.
CMAI is an industry body representing textile manufacturers and exporters and advocates for the clothing industry's interests.
According to a Crisil report, India’s textile industry is expected to grow in the calendar year 2024, driven by a consistent improvement in domestic demand, gradual recovery in exports, and lower cotton prices.
The main buyers of Indian ready-made garments are European nations led by Germany, the Netherlands, Italy, Poland, and Denmark.
The textile and apparel market is projected to grow at a CAGR of 14.59%, expanding from $172.3 billion in 2022 to $387.3 billion by 2028, according to the Indian Brand Equity Foundation (IBEF), established by the ministry of commerce and industry.
The textile industry is India's second-largest employer after agriculture, providing direct employment to 45 million people and 100 million people in the allied sector.
