Textile and apparel exports decline 14%

Textile and apparel exports from India experienced a decline of 13.988% in the fiscal year 2022-2023 compared to the previous year. Apparel exports grew by 1.1%, while textile exports shrank by 23.3%. Factors such as high inventory with international buyers and high cotton prices in India were cited as reasons for the decline. However, there is hope for a recovery as cotton textile exports crossed $1 billion in March 2023. Stable raw material policies and no restrictions on raw materials were highlighted as key factors for the industry’s revival.

Textile and apparel exports contracted 13.9 % in 2022-2023 compared with the previous year.

At $41.3 billion exports in 2021-2022, textiles and apparel constituted 9.79% of total goods exports. However, in 2022-2023, the segment recorded exports of $35.5 billion and constituted just 7.95% of goods exports. While apparel exports grew 1.1% last financial year ($16.1 billion) compared with the previous year ($16.01 billion), textile exports shrank 23.3% to $ 19.3 billion last fiscal.

Meanwhile import of yarn, fabrics and made-ups rose 26.7%.

According to Siddhartha Rajagopal, executive director of Cotton Textiles Export Promotion Council, “It was an exceptional (bad) year for cotton textiles. However, in March 2023, cotton textile exports crossed $1 billion, which is giving hope. It is an encouraging sign and the hope [is that] the momentum will be maintained.”

Mr. Rajagopal said a couple of factors that affected exports this year were the huge inventory that was with the international buyers and the high cotton prices in India last year. The inventory with buyers had affected orders to countries such as Bangladesh too. Now, the buyers are resuming sourcing for their needs, he said.

Industry sources here added that there should be a stable raw material policy - be it for cotton or manmade fibres. There should not be any restriction on raw materials, they said.

Naren Goenka, chairman of Apparel Export Promotion Council, said in a press release that India had ramped up its global apparel exports in 2022-2023 despite the Russia-Ukraine war, sluggish demand in major garment importing countries, stiff competition by other major apparel manufacturing countries, and volatility in raw material prices in the beginning of the year.