India’s textile and apparel market is projected to grow at a CAGR of 14.59 per cent to $387.3 billion by 2028 from $172.3 billion in 2022, as per a report by the Indian Brand Equity Foundation (IBEF) established by the Ministry of Commerce and Industry.
As per aCRISIL report, in 2024, growth in the Indian textile industry will be driven by consistent domestic demand improvement, a gradual recovery in exports, and lower cotton rices.
Driven by a rising demand from the Commonwealth of Independent States (CIS) and South Asian markets, India’s textile exports increased by 4.15 per centin Q1, FY25.Data from the commerce ministryindicates,India’s textile exports rose to $8.78 billion from $8.43 billion during the quarter from the corresponding quarter last year.
Exports to the CIS region, including countries such as Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan, the CIS region grew by 113.33 per cent to $64 million during the quarter from $30 million in the same period last fiscal year. Exports to the South Asian markets also increased significantly by 35.65 per cent to $898 million.
India’s textile exports to Latin America grew by 15 per cent to $346 million in the first quarter. This increase can be attributed to strengthened trade relations and heightened demand for Indian textiles in Latin American markets.
However, exports to North East Asia (NEA) and Africa declined by 28 per cent and 15.74 per cent to $298 million and $423 million respectively, indicating the need for strategic adjustments to tackle specific market challenges.
The first quarter of FY25 shows some upward movement in apparel exports, a welcome shift from the downward trends seen in recent years,says Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI). Mehta attributes this to slightly improved sentiments in the US economy and a shift in buyer preference away from China and Bangladesh. However, the growth remains minimal and from a low base, he cautions.
The apparel and textile industry contributes approximately 2.3 per cent to India's GDP, 13 per cent to industrial production, and 12 per cent to total exports. India stands as the world's sixth-largest exporter of textiles and apparel.
