Weaving sustainable growth?
India’s apparel exports registered a significant growth of 35.06 per cent in October 2024 at $ 1,227.44 million compared to same month last year despite continuing wars and the Red Sea issue, according to the Confederation of Indian Textile Industry (CITI). In April-October 2024, apparel exports were $8.7 billion, 11.6 per cent higher than the corresponding period of last year. This raises hopes that 2024-25 could be better than 2017-18, when India’s garment exports hit a peak of $16.71 billion.
On the other hand, textiles exports from India reached $ 1,833.95 million in October 2024, 11.56 per cent higher than October 2023. India’s cumulative exports of textiles and apparel (T&A) in October 2024 reported 19.93 per cent increase compared to October 2023. This development, according to CITI report, underscores the resilience and competitiveness of India’s T&A industry on the global stage.
Experts attribute this export surge mainly to the depletion of stocks with the buyers and many economies doing better than expected. Two key markets – US and UK with growth of 11.5 per cent and 7 per cent respectively — have propelled India’s T&A demand. India has also been doing well in a few of the FTA markets such as South Korea, Japan, and Australia.
Though the April-October 2024 number is actually 4.7 per cent lower than April-October 2022, a good year in which exports touched $16.19 billion (thanks to post-Covid demand), surge in this year’s exports is more sustainable, feel experts. The sudden resurgence in India’s exports after the pandemic was followed by reduction in apparel imports by developed countries as retailers faced high inventory levels. As a result, apparel imports in the US, EU, and UK declined by 22 per cent, 16 per cent, and 26 per cent, respectively, in 2023. The decline in imports eased during the first half of 2024, followed by a recovery in the initial two months of the third quarter. According to the Apparel Export Promotion Council (AEPC) officials, India’s apparel manufacturers are also benefiting from the industry’s strong emphasis on quality and sustainability.
The global supply chain realignment due to the Bangladesh crisis is also to some extend responsible for bringing garment export orders to India. The latest McKinsey & Company report states that high street fashion brands are expected to focus on India, as they turn to Asian growth markets like India for manufacturing opportunities. Despite India recording the highest rate of apparel quality failures in 2023, improvements are likely on the horizon with the Indian government implementing reforms through quality control orders. With India’s economy projected to grow at 7 per cent annually and become the fourth-largest globally by 2025, the country is on track to emerge as the world’s third-largest consumer market by 2027, as per the McKinsey report.
India’s robust growth is positioning it as a crucial player in the global fashion market, especially in the mid-market segment, which is anticipated to expand by 12 to 17 per cent in 2025, significantly outpacing the projected low single-digit growth of the global fashion market.
