India's textile and garment industry faced a significant setback in April 2023, signaling a challenging start to the new fiscal year.
The current figures underscore the challenges confronting India's textile industry, as both exports and imports in various textile categories experienced a considerable decline, according to the latest data from India's Ministry of Commerce and Industry.
In April 2023, India's RMG exports witnessed a sharp decline of 23.10 percent, plummeting to $1,210.66 million compared to the corresponding period of the previous fiscal year, where it stood at $1,574.37 million. This downturn indicates a considerable drop in demand for Indian RMG in international markets.
Furthermore, the export of cotton yarn, fabrics, made-ups, and handloom products experienced a similar decline, with a decrease of 23.42 percent. The value fell to $887.89 million in April 2023 from $1,159.49 million in the same period of the previous fiscal year. Additionally, carpet exports contracted by 15.85 percent, amounting to $105.19 million, compared to $125 million in the previous year. Similarly, the exports of man-made yarn, fabrics, and made-ups witnessed a decline of 13.93 percent, reaching $393 million in April 2023, down from $456.59 million in April 2022.
Concurrently, India's imports of textile, yarn, fabric, and made-up articles also faced a downturn, decreasing by 17.06 percent to $161.38 million in April 2023, compared to $194.58 million in the corresponding period of the previous fiscal year. The import of cotton raw material and waste experienced a decline of 13.81 percent, reaching $45.3 million in April 2023, down from $52.56 million in the previous year.
Examining the previous fiscal year, the exports of RMG and all textile products observed a modest increase of 1.10 percent, totaling $16,191.47 million in FY23. Notably, garment exports alone accounted for $16,014.84 million in 2021-22.
The contraction in RMG and textile exports during April 2023 highlights the urgent need for measures to enhance the competitiveness and performance of the sector in order to overcome these difficulties.
