When political turmoil in Bangladesh unravelled on 5 August 2024, many believed that it presented an opportunity for India’s textiles and apparel (T&A) industry to gain a major share of the diverted orders and strengthen its presence in the global market. While it may be true for local garment manufacturers, the same cannot be said for Indian fibre and yarn makers (for whom Bangladesh is a major export destination). In any case, as was pointed out by industry experts during ITJ’s webinar on 14 August 2024, India lacks capacity to fulfil additional demand resulting from the diversion of orders by global buyers from Bangladesh. While Bangladesh’s monthly apparel exports are valued between $3.5-3.8 billion, India’s current monthly exports range from $1.3-1.5 billion.
Compared to last year, India’s T&A exports have shown promising progress this fiscal year so far. Driven by an increase in demand for apparel, India’s textiles and apparel exports in July 2024 increased by 4.73 per cent to $ 2.938 billion compared to $ 2.805 billion in the same month last year. While apparel exports during the month surged by 11.84 per cent in July 2024 to $ 1.277 billion from $ 1.142 billion in July 2023, textile shipments remained steady at $ 1.660 billion in the month ($ 1.663 billion in July 2023). The Confederation of Indian Textile Industry (CITI) attributed the growth in exports to the expanding share of Indian apparel in key markets such as the US, alongside increased exports to the European Union and the UK.
Similarly, T&A exports grew by 4.15 per cent to $8.78 billion in the first quarter (Q1) of FY25 compared to $8.43 billion in Q1 FY24. According to experts, upward movement in the apparel exports in the first quarter of FY25 was largely due to the slightly improved sentiments in the US economy and buyers looking to shift from China and Bangladesh. Though the performance in the first quarter of FY25 is a good sign, the growth is minimal and on a low base.
The Indian textiles and apparel industry has been witnessing a significant decline in its exports over the past few years mainly due to the preferential treatment given to neighbouring Asian countries (such as Bangladesh, Pakistan, and Vietnam) by the developed countries. For example, 20 per cent duty is charged on products imported from India, while the items manufactured in competing Asian countries are 100-per cent exempted from the duty. As a result, while exports of Indian manufacturers have been declining since 2017, there has been an exponential growth in exports from Bangladesh, Pakistan, and Vietnam.
In 2023-24, India’s textile exports (amounted to $34.4 billion) experienced a setback for the second consecutive year due to geopolitical tensions casting a shadow on the global economy. Exports in 2023-24 were down by 3 per cent and 16.3 per cent compared to 2022-23 and 2021-22, respectively. The persisting Red Sea crisis (escalating freight costs by about 100 per cent) and continued slowdown in the western countries have caused a drop in demand for T&A products.
While fiscal 2023-24 saw many downs, some textile firms managed to grow despite the challenges, showing their mettle in a difficult economic environment. In this edition, ITJ is showcasing India’s top 50 performers in the textiles & apparel industry.
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