Despite navigating a turbulent global landscape marked by geopolitical uncertainties, Indian textile exports in 2024 outperformed many expectations, according to Biswajit Dhar, Distinguished Professor at the Council for Social Development. However, the year 2025 is poised to present a more formidable set of challenges, with the looming threat of “Trump tariffs” casting a long shadow over the sector’s prospects.
In an interview with Businessline, Professor Dhar highlighted the mixed performance of Indian exports in 2024. While some months witnessed encouraging growth figures, a consistent upward trajectory remained elusive. Furthermore, the sector exhibited a degree of disparity, with certain segments demonstrating strong performance while others lagged behind.
Notably, the garment industry, despite anticipated gains following disruptions in the Bangladeshi textile sector, has failed to capitalize on the situation. This missed opportunity is a significant concern for the Indian textile industry.
Professor Dhar emphasized that potential benefits arising from trade restrictions imposed on Chinese textile exports by the previous US administration could present a crucial opportunity for Indian exporters to increase their market share in the United States. However, this necessitates a concerted effort to address the long-standing challenges faced by the Indian textile industry, such as logistical bottlenecks and infrastructural inadequacies.
The year 2025 is expected to bring renewed economic growth in the US, potentially fueled by lower interest rates. However, the spectre of trade tariffs could significantly impact the sector’s ability to fully leverage these opportunities.
Key Takeaways:
- Indian textile exports in 2024 exhibited a mixed performance, exceeding expectations despite global uncertainties.
- The garment industry, despite anticipated gains, has failed to capitalize on disruptions in competitor markets.
- Potential benefits from trade restrictions on Chinese exports could be significant for Indian exporters.
- Overcoming logistical bottlenecks and infrastructural challenges is crucial for the Indian textile industry to thrive.
- The looming threat of “Trump tariffs” poses a significant challenge to the sector’s prospects in 2025.
