In January, India witnessed an 11 per cent surge in its RMG exports to $11.57 billion from $10.13 billion in December 2023, as per data from the Ministry of Commerce. This surge is attributed to shipments circumventing the Red Sea crisis by navigating the longer route around the Cape of Good Hope in Africa.
Exports to European nations, spearheaded by Germany, the Netherlands, Italy, Poland, and Denmark, grew by 19 per cent M-o-M to $4.30 billion in January.
However, from April 2023-January 2024 of the ongoing fiscal year, India’s textile exports dipped to $27.69 billion from $29.41 billion in the corresponding period of 2022-23.
Rahul Mehta, President of the Clothing Manufacturers Association of India (CMAI), foresees increased expenses and operational challenges not only for India but also for countries like Bangladesh and China.
Despite the growth in RMG exports, Mehta anticipates a subdued outlook for the sector, with no significant upswing in global trade sentiment. The Red Sea crisis is expected to persist, impacting shipping costs and timelines, he emphasises.
The world's sixth-largest textiles and apparel exporter, India’s T&A sector contributes 2.3 per cent to the nation's GDP, 13 per cent to industrial production, and 12 per cent to exports. Second only to agriculture in employment, the industry directly engages 45 million people and supports an additional 100 million in allied sectors.
As per the Indian Brand Equity Foundation (IBEF), the textile and apparel market is on a trajectory to expand from $172.3 billion in 2022 to $387.3 billion by 2028, reflecting a commendable CAGR of 14.59 per cent.
