The Indian textile sector has been caught in a complex web of shifting global dynamics, as revealed by a recent analysis of export trends from 2017-18 to the first quarter of 2024-25. While certain segments have witnessed substantial growth, others have experienced decline or stagnation, painting a mixed picture of the sector’s performance.
Key Findings:
- Gainers:
- Fuel: The fuel sector, particularly mineral fuel exports, has emerged as a significant growth driver, fueled by favourable global conditions.
- Pharmaceuticals: The pharmaceutical industry has steadily increased its export share, benefiting from India’s position as a global pharmaceutical hub.
- Electrical Equipment: The electrical equipment sector has witnessed remarkable growth, capitalising on rising global demand for products like power cables, generators, and turbines.
- Nuclear Reactors/Boilers: While showing modest growth, this sector has maintained a steady export share.
- Losers:
- Gems and Jewellery: This sector has faced a significant decline in export share, attributed to factors such as increased competition and changing consumer preferences.
- Apparel: The apparel industry has struggled to maintain its export competitiveness, facing challenges related to rising input costs and global market dynamics.
- Vehicles: The auto sector has experienced a decline in exports, impacted by factors like reduced global demand and domestic economic conditions.
- Organic Chemicals: This sector has witnessed a slight decrease in export share, reflecting changing market dynamics and competitive pressures.
- Marine: The marine sector has faced challenges due to infrastructure constraints and global trade trends.
- Iron and Steel: This sector has remained relatively stagnant, with minor fluctuations in export share.
- Cotton: The cotton industry has experienced mixed fortunes, with varying levels of export performance across different product segments.
Diversification and Value Addition:
To sustain long-term growth, the Indian textile sector must prioritise diversification and value addition. This involves exploring new markets, focusing on niche segments, and investing in technology and innovation. Additionally, addressing challenges such as infrastructure bottlenecks, labour costs, and regulatory hurdles is crucial to enhance the sector’s competitiveness.
By strategically navigating these challenges and capitalising on emerging opportunities, the Indian textile sector can position itself as a global leader and contribute significantly to the country’s economic growth.
