India’s garment export sector is witnessing a significant revival, defying global challenges and geopolitical tensions. Despite ongoing conflicts and regional issues, the industry has managed to capitalise on a confluence of factors, including depleted buyer inventories and improving economic conditions in key markets.
A Promising Outlook
In the April-October 2024 period, India’s garment exports surged 11.6% year-on-year to reach $8.7 billion. This robust performance has ignited hopes that the fiscal year 2024-25 could potentially surpass the peak export figures of $16.71 billion achieved in 2017-18.
Leveraging Global Opportunities
While India has missed out on capturing a substantial share of Bangladesh’s market due to various constraints, the country is well-positioned to benefit from the global shift in demand. The United States and the United Kingdom, India’s two largest export markets, have contributed significantly to the recent growth, with export volumes increasing by 11.5% and 7%, respectively. Smaller markets like the Netherlands and Spain have also emerged as growth drivers, with export growth rates of 27% and 18%, respectively.
Sustainable Growth Trajectory
Industry experts attribute the current uptick in exports to a combination of factors. The post-pandemic surge in demand led to excessive inventory buildup among retailers, which has now normalised. As a result, buyers are replenishing their stocks, driving demand for Indian garments.
N Thirukkumaran, General Secretary of the Tiruppur Exporters Association, highlighted that the industry’s order books are filled until March 2025, indicating a strong pipeline of business. Sivaramakrishnan Ganapathi, V-C & MD of Gokaldas Exports, noted that the decline in apparel imports by major economies like the US, EU-27, and UK during 2023 has now stabilised, signalling a return to more normal levels of demand.
Sanjay K Jain, Chairman of the ICC National Expert Committee on Textiles, emphasised that the depletion of pipeline inventories in key markets has necessitated increased imports, creating opportunities for Indian exporters.
As India continues to strengthen its position as a global apparel manufacturing hub, the industry is poised for further growth and development. By leveraging its skilled workforce, competitive costs, and improving infrastructure, India can capitalise on the evolving global landscape and solidify its dominance in the international textile market.
