Export order decline hits apparel and textile production

Textile exports increased by 11.06 per cent in September 2023 compared to the previous year, while apparel exports saw a decline of 11.23 per cent last month.

The steep decline in exports and depressed demand, both domestically and globally, has resulted in a more than one-fifth decrease (22.6 per cent) in India’s garment manufacturing between April and August this year, compared to the same period in 2022. Manufacturers mentioned that textiles also experienced a drop of nearly 2 per cent during the same period, in comparison to the previous year.

According to data available from the Confederation of Indian Textile Industry (CITI) regarding the Index of Industrial Production for textiles and clothing, textile production showed a slight improvement (1.6 per cent) in August. However, there was a decline in the cumulative index for April to August. The index for “wearing apparel” (meaning garments) decreased by 17.1 per cent in August and 22.6 per cent during April to August 2023, as opposed to the corresponding period in the previous year. Despite this, textile exports increased by 11.06 per cent in September 2023 compared to the previous year, while apparel exports saw a decline of 11.23 per cent last month.

A textile exporter near Coimbatore, who preferred not to be identified, attributed several reasons for this decline in manufacturing and exports. He mentioned that the Quality Control Order recently introduced by the government, which mandates a Bureau of Indian Standards certification for man-made fiber, including imported ones, has caused a significant drop in exports. Textile manufacturers are finding it challenging to procure these raw materials according to the government’s specifications in the international markets, leading to this decline.