India’s export of readymade garments grew significantly in terms of value in January as shipments stuck due to the Red Sea crisis were able to reach their destinations by taking the longer route around the Cape of Good Hope in Africa.
According to data by the Commerce Ministry, exports of ready-to-wear textile products rose 11 per cent to US $ 11.57 billion in January from US $ 10.13 billion in December 2023, although volume data for these shipments was not available on the Ministry’s NIRYAT platform.
The total value of textile exports over the first ten months of the current fiscal year, which runs from April 2023 to January 2024, was US $ 27.69 billion, a decrease from US $ 29.41 billion during the same period in 2022–2023.
European countries, primarily Denmark, Germany, the Netherlands, Italy, and Poland, were the primary purchasers of Indian readymade garments (RMG). These nations saw a 19 per cent month-over-month increase, culminating in US $ 4.30 billion in January.
“Red Sea crisis will make things a little more expensive, and it is impacting everybody. India cannot be seen separately. It will also impact exports of Bangladesh, China, and others. Overall, global trade has become more expensive because of the Red Sea crisis,” said Rahul Mehta, president, Clothing Manufacturers Association of India (CMAI).
Rerouting from Africa has resulted in increased shipping costs for Indian goods. The commerce ministry said in a report last month that about 95 per cent of vessels had diverted around the Cape of Good Hope, adding 4,000–6,000 nautical miles and 14–20 days to itineraries.
India’s textile and apparel market is predicted to reach US $ 387.3 billion by 2028, rising at a compound annual growth rate (CAGR) of 14.59 per cent from US $ 172.3 billion in 2022, according to the Indian Brand Equity Foundation (IBEF), an organisation founded by the ministry of commerce and industry.