Textile and apparel exports decline 14%

Segment contributed 7.95% to goods exports, compared with 9.8% in FY22

In March 2023, cotton textile exports crossed $1 billion; it is an encouraging sign and the hope [is that] the momentum will be maintained, says Siddhartha Rajagopal, executive director, Cotton Textiles Export Promotion Council | Photo Credit: Hand out

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.”

High inventory

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.