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India’s textile exports boosted by orders from US, EU

Sep 08, 2021
India’s textile exports boosted by orders from US, EU

New Delhi

India’s textile exports have a boost by orders from US and EU. India’s textile and apparel exports to the US, its single largest market, were up 55 % in the first seven months of 2021.

This is the fastest pace of growth among the top five countries exporting textile and garments to the US. A sustained recovery in global trade and demand from key external markets like the US and the European Union in product categories such as textiles and garments have helped boost India’s exports, which recorded the sixth consecutive month of growth in August.


In the high-margin global export market for clothing and apparel, India has been edged out by competitors such as Vietnam, Indonesia and Bangladesh consistently over the last 10 years, which have been growing much faster in supplies to key markets such as the US and the EU. The trend so far in 2021 marks a reversal of this trend — India’s exports to the US surged 55 % during January-July 2021, higher than Vietnam’s 18%, Bangladesh’s 29 %, China’s 28 % and Mexico’s 31%.


One of the reasons cited by trade analysts is the higher export order books being reported by Indian garment exporters, alongside buoyant orders in the home textile segment where India has traditionally been a strong player. Less severe lockdown restrictions in the country’s export hubs, especially in southern states such as Tamil Nadu and Karnataka, during the second wave of Covid-19 also ensured continuing operations of units, alongside some degree of diversion of products from the sluggish domestic market to exports.

From a macroeconomic perspective, rising exports are a positive sign for India’s economy as it recovers from the economic shock induced by the second wave of the Covid pandemic, which has differentially blunted three out of the four engines of GDP growth — private consumption, investments and government consumption.

 

Source: The Indian Express

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