India’s textiles and apparel exports grow 7% in FY24 amid global challenges

NEW DELHI: India’s textiles and apparel exports, including handicrafts, grew by 7 per cent in the April-October period of FY24, reaching $21.35 billion compared to $20 billion during the corresponding period last year, according to government data released on Thursday.
The textiles ministry revealed that ready made garments category occupied the largest share of 41 per cent, with exports worth $ 8,733 million out of total exports worth $ 21,358 million during the April-October period, this was “followed by Cotton Textiles (33 per cent, $ 7,082 million), Man-Made Textiles (15 per cent, $ 3,105 million).”
The ministry further highlighted that exports have an optimistic outlook with almost all principal commodities experiencing growth besides wool and handloom products, which declined by 19 per cent and 6 per cent, respectively.

Imports on a decline

On the import front, textiles and apparel imports, including handicrafts, dipped by a slight 1 per cent to $ 5.43 billion over the same period, down from $5.46 billion in the previous year.
Man-made textiles dominated imports, making up $1.86 billion (34 per cent) of the total $5,425 million due to a demand-supply gap in this sector, the ministry noted.
The ministry attributed the import growth in cotton textiles to the demand for long-staple cotton fibre, adding, “Such trends of import indicates an increase in production capacity of the country amidst rising consumption and self-reliance,” the official statement said.
For FY 2023-24, India’s overall imports of textiles and apparel stood at $ 8.94 billion, a 15 per cent decline from $ 10.48 billion in FY 2022-23.
Global standing and trade insights
India remains a significant player in the global textiles and apparel market, ranking as the world’s sixth-largest exporter in 2023. The sector accounted for 8.21 per cent of India’s total exports in FY 2023-24, with the USA and the EU being the top export destinations, contributing 47 per cent to the total exports according to the ministry.
India holds a 3.9 per cent share in global trade for textiles and apparel.
“India is a major textile and apparel exporting country and enjoys trade surplus. Bulk of import takes place for re-export or for industry requirement of raw material,” the textile ministry said.

Challenges

The ministry also acknowledged that export growth in early FY 2024 was affected by geopolitical tensions in the Red Sea region, which disrupted export flows during January, February, and March 2024.
Furthermore, it is important to note that exports are driven by demand and supply dynamics, influenced by factors such as global demand, domestic consumption, order flow, and logistics, among others.