Indian textile exports have elevated 4.15% within the first quarter of the present fiscal 12 months, pushed by rising demand from Commonwealth of Unbiased States (CIS) and South Asian markets.
In response to the newest knowledge from the commerce ministry, textile exports grew to $8.78 billion within the first quarter of FY25 in comparison with $8.43 billion in the identical interval final 12 months.
This assumes significance provided that the home attire and textile trade contributes about 2.3% to the nation’s GDP, 13% to industrial manufacturing, and 12% to exports. India is the world’s sixth largest exporter of textiles and attire.
The CIS area, together with nations like Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, recorded a progress of 113.33%, growing to $64 million within the quarter in comparison with $30 million within the corresponding months of the final fiscal 12 months.
South Asia additionally noticed a major enhance of 35.65%, reaching $898 million.
Exports to Latin America elevated by 15% to $346 million within the first quarter on account of strengthened commerce relations and rising demand for Indian textiles in Latin American markets.
Nevertheless, areas like North East Asia (NEA) and Africa witnessed a decline in exports, highlighting the necessity for strategic changes to deal with market-specific challenges.
Textile exports to NEA contracted by 28%, lowering to $298 million within the first quarter. Equally, exports to Africa contracted 15.74% to $423 million.
Business insights
“The primary quarter of FY25 is displaying some upward motion within the exports of attire, which is a welcome departure from the downward tendencies noticed within the final couple of years,” mentioned Rahul Mehta, chief mentor, Clothes Producers Affiliation of India (CMAI).
“That is largely as a result of barely improved sentiments within the US financial system in addition to the shift desired by patrons from China and Bangladesh,” Mehta mentioned.
Nevertheless, one should remember that the expansion is minimal and on a low base, he mentioned.
CMAI is an trade physique representing textile producers and exporters and advocates for the clothes trade’s pursuits.
In response to a Crisil report, India’s textile trade is anticipated to develop within the calendar 12 months 2024, pushed by a constant enchancment in home demand, gradual restoration in exports, and decrease cotton costs.
The principle patrons of Indian ready-made clothes are European nations led by Germany, the Netherlands, Italy, Poland, and Denmark.
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The textile and attire market is projected to develop at a CAGR of 14.59%, increasing from $172.3 billion in 2022 to $387.3 billion by 2028, in keeping with the Indian Model Fairness Basis (IBEF), established by the ministry of commerce and trade.
The textile trade is India’s second-largest employer after agriculture, offering direct employment to 45 million individuals and 100 million individuals within the allied sector.
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