A report of CareEdge Ratings has said that apparel exports may rise at a CAGR (compounded annual growth rate) of 12-13 per cent and surpass US $30 billion by 2027.
This shall translate into 4.6 – 4.9 per cent share in world apparel exports as against the current share of around 3 per cent.
Multiple incentive schemes rolled out by the Government, trade agreements with key nations and the declining share of China are few important factors behind this expected growth.
The provisional export data of October ’22 suggests that apparel exports contracted 21 per cent to US $ 988.72 million, from US $ 1.25 billion in October ’21.
Apparel export was US $ 16 billion in 2021-22 which is still less compared to 2017-18 (US $ 16.7 billion) and 2018-19 (US $ 16.2 billion).
The report also says that apparel constituted a major share of around US $500 billion in the global textile and apparel trade of around US $850 billion in the calendar year 2021. The global apparel market is expected to reach around US $650 billion by 2027.
The European Union (EU), the US, the UK, Japan, Canada and South Korea together account for nearly 60 per cent of the total global imports.
Krunal Modi, Associate Director, Corporate Ratings said, “Having adequate raw material and a large labour workforce, India is well poised to grab the opportunity in the global apparel market. India has a very good presence across the cotton textile value chain from fibre to fabric, while it has a limited presence in man-made fibre, which is expected to get a boost by expected FTA with the UK and PLI scheme.”
He further added that having presence across the entire value chain reduces transportation costs and lead time, thereby providing a cost-effective solution to the customers. With all these supporting factors, Indian apparel exports are expected to surpass the US$ 30 billion mark by CY ’27.
