India’s textile exports witnessed a robust growth of 4.15% in the first quarter of the current fiscal year, buoyed by increased demand from the Commonwealth of Independent States (CIS) and South Asian markets, according to the commerce ministry.
Total textile exports surged to $8.78 billion during April-June 2023 compared to $8.43 billion in the same period last year. This positive trend is particularly significant considering the textile industry’s substantial contribution to the Indian economy, accounting for 2.3% of GDP, 13% of industrial production, and 12% of exports. India ranks as the world’s sixth-largest exporter of textiles and apparel.
The CIS region, comprising countries like Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, emerged as a major growth driver, with exports soaring 113.33% to $64 million. South Asia also contributed significantly, with a 35.65% increase to $898 million. Additionally, exports to Latin America rose 15% to $346 million.
However, the industry faced challenges in other markets, with exports to Northeast Asia declining by 28% to $298 million and those to Africa contracting by 15.74% to $423 million.
Rahul Mehta, chief mentor of the Clothing Manufacturers Association of India (CMAI), attributed the overall positive trend to improved sentiments in the US economy and a shift in buyer preference away from China and Bangladesh. Nevertheless, he cautioned that the growth was modest and built on a low base.
Industry experts predict continued growth in the textile sector, driven by rising domestic demand, export recovery, and lower cotton prices. The market is projected to expand at a compound annual growth rate (CAGR) of 14.59% from $172.3 billion in 2022 to $387.3 billion by 2028.
With its massive workforce and growing global footprint, the textile industry remains a cornerstone of India’s economy.
