After experiencing a period of over a year marred by uncertainty and decline, the textile and apparel export sector offered a gleam of optimism as it witnessed a growth of 6.91% year-on-year in March. Despite this upturn, the overall figures for the fiscal year 2023-2024 depict a contrasting story, with the sector experiencing a contraction of 3.24% compared to the previous year.
Delving into specific categories, exports of cotton yarn, fabrics, and made-up articles saw a significant increase of 6.78% in March, relative to the same period in the preceding year. This growth trajectory continued in the financial year 2024, marking a 6.71% year-on-year expansion. These gains signal a positive response to the challenges faced by the industry, such as the fluctuations in global demand influenced by trade tensions and a volatile international market.
On the apparel front, the exports marginally improved by 1.7% last month compared to March of the preceding year. However, the overall performance for fiscal year 2023-2024 fell short with a steep decline of 10.25% from the analogous period of 2022-2023. The apparel segment, significantly impacted by the global dip in consumer spending and heightened competition from other emerging economies, struggled to keep pace with its textile counterpart.
Sunil Patwari, the chairman of the Cotton Textiles Export Promotion Council, weighed in on the situation with a sense of cautious optimism. He acknowledged that the Indian textile industry’s resilience had been robust in the face of geo-strategic challenges that had rippled through the global economy in the last financial year. Patwari emphasized that the new government at the Centre should prioritize addressing critical industry issues to support this nascent recovery. Among the core concerns he outlined were the high costs of raw cotton in domestic markets, which continue to place Indian textile products at a competitive disadvantage internationally.
Patwari further proposed that the government should work towards securing preferential access in crucial markets. Such strategic trade agreements would alleviate tariffs and barriers faced by Indian exporters, providing them with much-needed leverage against international competitors.
The global textile and apparel landscape has been shapeshifting, with sustainability, technology adoption, and supply chain reconfigurations playing pivotal roles. In light of these shifts, the Indian textile sector’s growth, despite various headwinds, augurs well for its future. Investment in technological upgrades, improved supply chain management, and adherence to sustainability standards appear to be the way forward for securing a resilient growth trajectory.
The industry also seeks to tap into emerging trends, such as the increasing demand for technical textiles and the adoption of digitalization in manufacturing processes. Advances in areas such as nanotechnology, smart wearables, and eco-friendly materials present novel opportunities for export expansion.
Additionally, the sector’s outlook is influenced by demographic factors and evolving consumer tastes. The burgeoning middle class in developing nations and the shift towards online retail could further bolster India’s textile and apparel exports if tapped effectively. Acknowledging such potential, the industry urges the government to ensure a stable policy environment that encourages innovation, enhances skill development, and supports the penetration of Indian textiles into new markets.
In sum, March’s growth in India’s textile and apparel exports offers a ray of hope for an industry that has experienced its share of trials. With strategic government intervention to manage internal and external challenges, coupled with the industry’s intrinsic capacity for adaptivity and resilience, the sector aspires to weave a firm pattern of growth in the upcoming financial year.
