India’s textile exports took another hit in the 2023-24 fiscal year, dropping by over USD 1 billion or 3 per cent from the previous year to USD 34.4 billion.
Compared to 2021-22’s exports of USD 41 billion, the decline was a steeper 16.3 per cent.
The dip is attributed to ongoing geopolitical tensions and a struggling global economy that has dampened consumer demand.
However, one bright spot was the cotton yarn, fabrics, made-ups and handloom segment, which saw exports increase by USD 740 million year-over-year.
“The overall western economy has taken a hit, especially in terms of recession in some parts of the globe. This has caused a drop in consumer confidence in those countries,” said Israr Ahmed, vice president of the Federation of Indian Export Organisations (FIEO). He cited surging freight costs due to the Red Sea crisis as another factor, reported TOI.
North America remained the top export destination at USD 11 billion, followed by Europe at USD 10 billion and West Asia/North Africa at USD 4 billion.
The readymade garment category, comprising 42 per cent of total textile exports, declined by 10 per cent to USD 14.5 billion in 2023-24.
“The past two months have seen a recovery despite global headwinds. The industry is bullish that the value of exports will reach USD 20 billion in the current fiscal,” said Mithileshwar Thakur of the Apparel Export Promotion Council, pointing to recent free trade agreements.
In Tirupur, India’s knitwear hub, exports plummeted from USD 4 billion in 2021-22 to USD 3 billion this past year as per Raja M Shanmugam, a former president of the local exporters’ association. He called for emergency credit support for struggling textile MSMEs.