Domestic demand for ready-made garments (RMG) is projected to stay moderate due to reduced discretionary spending and surplus inventory from the previous fiscal year. However, international demand is expected to see significant improvement in 2024. As per the B&K Securities report, export growth in the RMG sector will likely be fueled by several factors, including restocking by Western retailers, rising demand for spring-summer collections, and an overall increase in retail sales.
While the recent crisis in Bangladesh (a major player in the global RMG market) only presented a temporary tailwind for Indian exporters, some brand owners may consider shifting a part of their production out Bangladesh amid still uncertain political situation. As per Crisil’s recent report, Indian ready-made garment companies are witnessing an uptick in sales inquiries from key export destinations such as the US and Europe.
Push towards the China Plus One strategy adopted by big retailers to diversify their , is also aiding India’s exports particularly in the US. The home textiles segment is poised to continue its growth trajectory, primarily driven by robust consumer spending in the US, which accounts for approximately 60 per cent of India’s home textile exports. The US Fed’s announcement on 18 September 2024 to cut the benchmark federal funds rate by half a percentage point is expected to further stimulate demand for India’s exports. The Free Trade Agreement (FTA) negotiations with the UK and the European Union offer additional opportunities for growth, potentially leading to higher margins and increased market share for Indian players, says the B&K Securities report.
On the downside, the Indian textile and apparel (T&A) industry is facing short-term challenges such as logistical disruptions due to the Red Sea crisis and uncompetitive domestic cotton prices. With cotton sowing reduced to 11.24 million hectares this kharif season, experts worry that this could hinder the industry’s ability to achieve the $40 billion export target for FY25.
As sustainability becomes a key focus in Western markets, particularly in Europe, Indian T&A companies will need to invest in complying with green regulations to stay competitive. Reflecting this shift, The Indian Textile Journal is celebrating its 135th Anniversary with a focus on sustainable development and innovations—two essential tools for addressing the needs of global consumers.
Technical textiles are emerging as a strong growth area, with exports projected to rise from the current $2.6 billion to $10 billion by 2030. The government’s record infrastructure investment of Rs 11.11 trillion is driving robust demand for technical textiles, particularly geosynthetics. The applications of geosynthetics will be showcased at the RAHSTA Expo 2024, organised by ASAPP Info Global Group (the publisher of ITJ), on October 9-10, 2024, at the Jio World Convention Center, Mumbai. The RAHSTA Expo—focused on Roads and Highways Sustainable Technologies & Advancement—is expected to attract over 500 construction CEOs and 5,000 professional and business visitors.
To register for RAHSTA Expo, visit www.RAHSTAexpo.com