India’s textile industry experienced a downturn in exports during November, despite the opening of markets in Western countries for the festive season. Ready-made garments, which are a key component of the textile export portfolio, witnessed a decline of 15%. This decline raises concerns about consumer preferences, market dynamics, and global economic conditions affecting the demand for fashion and apparel.
According to government data, the export of ready-made garments dropped to $8.84 billion in April-November 2023 from $10.36 billion during the same period in 2022. Major export destinations for Indian garments, including the European Union (EU), the US, and the Middle East, were all impacted by this decline.
Industry experts remain hopeful that this trend will reverse in the coming months as Western countries begin placing purchase orders for summer clothes. Indian cotton-based wearables are in high demand abroad, which could potentially boost exports.
While the overall industry outlook is subdued, certain segments demonstrated resilience and adaptability. Cotton yarn and handloom products, in particular, experienced a 6% growth during the period.
Several factors have contributed to the decline in the textile trade. The ongoing Ukraine-Russia war has impacted retail sales in the EU, while the ongoing Israel-Gaza conflict has affected demand from the Middle East. However, the US market has performed well, providing hope for future export figures.
The quick estimates released by the Union Commerce Ministry highlight a 21% month-on-month increase in the trade deficit, underlining the need for a comprehensive understanding of the forces at play in international trade.
Despite these challenges, India remains one of the top garment-manufacturing countries in the world. It is also a significant consumer and producer of cotton, with a large acreage under cultivation. The textile and apparel market in India is projected to reach $387.3 billion by 2028, contributing 2% to the country’s GDP and providing employment opportunities for millions of people.
The states of Andhra Pradesh, Telangana, Haryana, Jharkhand, and Gujarat are prominent hubs for textile and clothing manufacturing in India.
