The textile industry in Ahmedabad has displayed a commendable performance in exports, pointing towards positive growth trends for the current financial year. According to data from the Confederation of Indian Textile Industry (CITI), key segments such as cotton yarn, fabrics, and made-ups have witnessed a significant surge in exports, with a remarkable 17% growth in February compared to the previous year. This growth not only signals good prospects for the textiles sector in Gujarat but also reflects a broader positive outlook for the Indian textiles industry.
During the 11 months, exports of textile products have demonstrated strong resilience, with a significant 6.7% increase compared to the previous year. In February 2024, Indian textile exports experienced a notable year-on-year growth of 19.54%, while apparel exports also saw a respectable uptick of 4.88% during the same period. The combined exports of textiles and apparel in February 2024 showed a growth of 12.49% over the previous year.
However, the overall scenario from April 2023 to February 2024 presents a mixed picture. While Indian textile exports recorded a modest growth of 1.75% year-on-year, there was a significant decline of 11.42% in apparel exports during the same timeframe. The combined exports of textiles and apparel during this period showcased a decrease of 4.25% compared to the corresponding period in the previous fiscal year.
Industry experts attribute the positive trajectory in cotton yarn and fabric exports to India’s competitive cotton prices, which have boosted demand in international markets. Gujarat, in particular, has benefitted from this trend, exhibiting a substantial share in cotton yarn, fabric, and made-up exports. The surge in demand, particularly from countries like Bangladesh and China, has been a key driver of this growth.
On the flip side, the apparel segment has encountered challenges, including high input costs and subdued demand in various countries due to rising inflation. Factors such as ongoing geopolitical tensions and crises, such as the conflict between Russia and Ukraine and the Red Sea crisis, have added to business costs and pricing pressures. Additionally, stiff competition from nations like Vietnam and Bangladesh, along with the decrease in cotton prices, has contributed to the decline in the value of apparel exports from India.
In light of these dynamics, it is evident that while the textiles industry in Ahmedabad is thriving in exports, strategic interventions are crucial to ensure sustained growth and competitiveness in the global market. Balancing the performance of textiles and apparel sectors amidst evolving market conditions will be vital for the industry’s long-term success.
