India’s textile exports face hurdles despite the bustling Western holiday season, attributed to disruptions in global supply chains, surging raw material expenses, and intense competition from other manufacturing hubs. These factors have adversely affected the performance for this year. Despite expectations of heightened demand during the festive period in Western markets, Indian textile exports have grappled with unforeseen challenges, failing to capitalise on the anticipated surge.
Industry players are observing international market dynamics, hopeful for a positive shift in the coming months. Simultaneously, stakeholders are devising strategies to navigate prevailing obstacles and improve the competitiveness of Indian textiles on a global scale. The sector’s adaptability and resilience will be put to the test as it adjusts to the evolving market conditions and reinvigorates export momentum.
Although November 2023 witnessed an overall downturn, there were exceptions highlighting the industry’s resilience and adaptability. Notably, cotton yarn and handloom products experienced a 6 per cent growth during this period.
Rahul Mehta, president of the Clothing Manufacturers Association of India (CMAI), attributed the decline in textile trade to various factors affecting major markets like the European Union (EU), the US, and the Middle East. Ongoing conflicts such as the Ukraine-Russia war have impacted EU retail sales, while the Israel-Gaza conflict has contributed to reduced demand in the Middle East. However, Mehta expressed optimism regarding the US market’s performance, expecting a correction in export figures in the upcoming months.
The recently released quick estimates by the commerce ministry underscore a 21 per cent month-on-month increase in the trade deficit, emphasising the necessity for an understanding of the dynamics in the international trade arena.
India stands among the leading garment-manufacturing nations globally and holds a prominent position as a consumer and producer of cotton, commanding the highest acreage globally, covering 38 per cent of the global area under cotton cultivation, according to the Indian Brand Equity Foundation (IBEF), an entity established by the ministry of commerce and industry.
