The holiday season in developed countries is anticipated to provide respite for cotton textile and garment exporters in the coming months, despite the fact that the apparel export slump is still present due to order delays and requests for price reductions.
According to an industry spokesperson, industrialised economies’ slowing economies and accumulated inventory since the pandemic have resulted to delays in orders or price reduction requests from India’s garment export clients.
The next holiday season is anticipated by exporters as a way to lift the current downturn. According to a spokesman from the cotton textile business, “Cotton textile exports increased by 6% in July, and the July-September quarter is expected to maintain that momentum.”
According to the spokesperson, there are signs of life, particularly in the yarn industry, even though inflation is still hurting exports of ready-to-wear clothing.
“The year will end on a high note, and a gain of 8–10% is imminent. Both read-made clothing and home textiles would experience development over the coming few months, the official predicted.
The problem is that “India’s export of apparel has largely been US- and EU-centric”, said Mithileshwar Thakur, secretary general of Apparel Export Promotion Council.
About 50% of India’s textile and clothing exports go to the US, the EU, and the UK.
According to official estimates, the first three months of this fiscal saw a fall in garment exports of about 23%, 13%, and 17% in April, May, and June, respectively. Shipments for the entire quarter decreased by 17.7% year over year to $3.69 billion in 2023 from $4.49 billion in 2022.
