India’s textile sector is experiencing a remarkable surge, as evidenced by the country’s merchandise exports in October 2024. These exports soared by an impressive 17.25% year-on-year, reaching a staggering USD 39.2 billion, marking the highest growth rate in over two years.
Key Drivers of Growth Several factors have contributed to this significant growth in textile exports:
- Government Initiatives: The government’s strategic focus on six key sectors, including engineering, electronics, pharmaceuticals, chemicals, plastics, and agriculture, along with 20 target countries, has yielded positive results.
- Market Access and Brand Promotion: The Commerce Ministry has actively pursued deeper economic integration with these 20 countries, which account for 60% of global imports. Efforts to address non-tariff barriers, promote the ‘Brand India’ initiative, and organise trade promotion events have significantly boosted export opportunities.
- Healthy Christmas Demand: The festive season, particularly Christmas, has fueled strong demand for Indian textiles, leading to double-digit growth in October.
Trade Deficit and Import Trends While exports have seen robust growth, India’s trade deficit widened to USD 27.14 billion in October 2024, up from USD 20.78 billion in September. Imports increased by 3.9% to USD 66.34 billion during the same period.
Outlook for the Future The Indian textile industry is poised for further growth, with the potential to surpass USD 800 billion in combined goods and services exports for the current fiscal year. The Commerce Ministry is actively engaging with Indian missions abroad to implement strategies that will drive exports from focus countries.
As the government continues to prioritise the textile sector and implement supportive policies, India’s textile exports are expected to maintain their upward trajectory, solidifying the country’s position as a global textile powerhouse.
