The Indian textile industry is demonstrating signs of recovery in the current fiscal year (FY25), buoyed by increased demand from European markets. According to data released by the Ministry of Commerce and Industry, exports to Europe during the April-October period surged by 6.39% to $5.66 billion, compared to the same period in the previous year.
While this growth is encouraging, it falls short of the $5.84 billion achieved in the entirety of FY23. Nevertheless, the trend indicates a positive trajectory, particularly considering the ongoing challenges faced by the global textile industry.
Key Drivers and Market Dynamics
Ready-made garments (RMGs) have been the primary driver of this growth, contributing $3.18 billion to the total exports. Other significant categories include cotton yarn, fabrics, made-ups, and handloom products, which collectively accounted for $1.10 billion.
Germany, Italy, Sweden, Finland, Switzerland, Turkey, Latvia, Austria, Greece, the UK, the Czech Republic, Poland, and Slovenia have emerged as key markets for Indian textiles during the first seven months of FY25. In the previous fiscal year, Sweden, the Czech Republic, Bulgaria, Switzerland, Finland, the Netherlands, and Ireland were the major markets. Notably, Austria, Greece, and Slovenia have gained traction as new destinations for Indian textile exports.
Impact of Global Factors
The ongoing crisis in Bangladesh, marked by political instability, labour unrest, and supply chain disruptions, has diverted European buyers towards alternative sourcing options, including India. This has significantly contributed to the increased demand for Indian textiles.
Industry Outlook and Future Prospects
The India Brand Equity Foundation (IBEF) projects the Indian textiles and apparel market to grow at a robust 10% CAGR, reaching $350 billion by 2030. India’s position as the world’s third-largest exporter of textiles and apparel, coupled with its strong export potential in various textile categories, further solidifies its global prominence.
Jitendra Srivastava, CEO of Triton Logistics & Maritime, highlighted the role of maritime and logistics in facilitating seamless trade. He emphasized the resilience of Indian exporters in adapting to challenges like the Red Sea crisis by rerouting shipments and optimizing supply chains. Additionally, improvements in port infrastructure, customs processes, and the growing demand for value-added products like technical textiles and man-made fibres have further strengthened India’s position as a key global exporter.
The textile and apparel industry is a vital contributor to India’s economy, accounting for 2.3% of GDP, 13% of industrial production, and 12% of exports. The industry is poised to double its contribution to GDP, reaching 5% by 2030.
With the global apparel market projected to grow at an 8% CAGR to $2.37 trillion by 2030 and the global textile and apparel trade expected to expand at a 4% CAGR to $1.2 trillion by 2030, India’s textile industry is well-positioned to capitalize on these growth opportunities and further strengthen its global footprint.
