The Indian textile industry experienced a downturn in exports, notably marked by a 15 percent decline in the crucial segment of readymade garments, in November 2023, reported. Despite the festive season opening up markets in western countries, this decline poses challenges for the industry, as per report.
Experts in the field express optimism, anticipating a reversal of this trend in the upcoming months. The hope is pinned on the expected surge in purchase orders for summer clothes from western countries, where Indian cotton-based wearables hold a high demand, reported.
The primary exporting destinations for Indian garments remain the European Union, the United States, and Middle Eastern countries. Government data reveals a significant 15 percent decline in the export of readymade garments, dropping from $10.36 billion in April-November 2022 to $8.84 billion in the corresponding months of 2023. This dip raises questions about evolving consumer preferences, market dynamics, and global economic conditions influencing the demand for fashion and apparel.
Furthermore, jute manufacturing, including floor coverings, witnessed a reduction in exports to USD 234 million in April-November 2023 from $303 million in the same period of the previous fiscal year. This contributed to a 23 percent year-on-year increase and a 24 percent month-on-month surge in the trade deficit in November 2023, as per estimates released by the commerce ministry.
However, amidst the overall downtrend in November 2023, certain exceptions shed light on the industry’s resilience. Cotton yarn and handloom products emerged as beacons of growth, recording a 6 percent increase during this period.
“For Indian textile industry, the European Union, the US, and the Middle East are the main markets. There are specific reasons for decline in the textile trade. The EU is yet to get over from the ongoing Ukraine-Russia war that has impacted retail sales,” said Rahul Mehta, President, Clothing Manufacturers Association of India (CMAI).
Despite these challenges, he expressed confidence in the performance of the US market and anticipated corrections in export figures in the coming months, attributing the decline in November to the pre-winter season, where the focus is not primarily on winter cloth manufacturing for global markets.
Handicrafts items also faced a setback, with exports dropping from $1.16 billion in April-November 2022 to $1.04 billion in the first eight months of the current fiscal year, reflecting negative growth of 10 percent. Despite these challenges, India remains among the top garment-manufacturing countries globally, emphasising its significant role as both a consumer and producer of cotton.
