Driven by the approaching Christmas holiday season, India's textile exports are on the rise, buoyed by increasing demand from Western markets. Following the successful clearance of excess inventory, the country's textile production and export activities are rebounding after a year of contraction. In September, textile exports recorded their third consecutive month of growth, with production growing 3.7 per cent year-on-year, as per data released by the Index of Industrial Production (IIP).
Sanjay Jain, Chairman of the National Expert Committee at the Indian Chamber of Commerce, envisions a robust revival, suggesting that India's textile exports may experience a surge of 8 to 10 per cent in the fiscal year 2024. Statistics from the Ministry of Commerce and Industry indicate a substantial 5.7 per cent increase in India's exports of cotton, fabric, yarn, and handloom products during the April-October period compared to the preceding April-August timeframe.
Despite these positive trends, the industry has yet to attain pre-COVID production levels, with data from the Ministry of Statistics and Program Implementation (MOSPI) revealing a 6.5 per cent shortfall compared to the 2019-20 period.
Sunil Kumar Sinha, Principal Economist at Ind-Ra, emphasizes the significance of global trade conditions for the long-term recovery of India's textile production and exports.