The rise in textile exports shows buyers' shift from China and Bangladesh, experts say
Exports to North East Asia and Africa though have seen significant declines
Dhirendra Kumar
Published26 Jul 2024, 02:42 PM IST
Textile exports grew to $8.78 billion in the first quarter of FY25 compared to $8.43 billion in the same period last year. (Image: Pixabay)
Indian textile exports have increased 4.15% in the first quarter of the current fiscal year, driven by rising demand from Commonwealth of Independent States (CIS) and South Asian markets.
According to the latest data from the commerce ministry, textile exports grew to $8.78 billion in the first quarter of FY25 compared to $8.43 billion in the same period last year.
This assumes importance given that the domestic apparel and textile industry contributes about 2.3% to the country’s GDP, 13% to industrial production, and 12% to exports. India is the world’s sixth largest exporter of textiles and apparel.
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The CIS region, including nations like Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, recorded a growth of 113.33%, increasing to $64 million in the quarter compared to $30 million in the corresponding months of the last fiscal year.
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South Asia also saw a significant increase of 35.65%, reaching $898 million.
Exports to Latin America increased by 15% to $346 million in the first quarter due to strengthened trade relations and rising demand for Indian textiles in Latin American markets.
However, regions like North East Asia (NEA) and Africa witnessed a decline in exports, highlighting the need for strategic adjustments to address market-specific challenges.
Textile exports to NEA contracted by 28%, decreasing to $298 million in the first quarter. Similarly, exports to Africa contracted 15.74% to $423 million.
Industry insights
“The first quarter of FY25 is showing some upward movement in the exports of apparel, which is a welcome departure from the downward trends observed in the last couple of years,” said Rahul Mehta, chief mentor, Clothing Manufacturers Association of India (CMAI).
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