Indian clothing and fabric exporters can now breathe a sigh of relief as international fashion labels have started placing orders for the year-end sale in international markets, albeit somewhat later than expected.
Industry insiders blame the ‘anti-China’ sentiment in Western markets and the ensuing transfer in their purchasing to India for the momentum’s growth. India exported US $ 16 billion worth of ready-to-wear clothing in 2022–23, an increase of 1.09 per cent from the previous year.
Garment producers had been seeing a reduction in orders, but things are now better. Even while the amount is not as large as anticipated, the flow of orders indicates that the clothing and accessories should be in stores for Christmas and New Year’s in countries like the US and Europe.
The second edition of the PLI scheme being proposed will be open to clothing, make-ups, and accessories made of all materials, unlike the current edition of the PLI plan for textiles, which is restricted to the manufacture of man-made fibre fabrics, apparel, and technological textiles.
According to insiders, several of the enterprises are still in a “wait and watch” posture because there is uncertainty over orders from international clients.
Major clients for Indian clothing exporters include international names like Tommy Hilfiger, Nautica, Ross, Decathlon, Suburbia, Polo Ralph Lauren, and GAP.
“We are expecting orders in June. While the US is positive, Europe still needs to improve,” said KM Subramanian, President, Tirupur Exporters’ Association.
Consumer spending has been hurt by the global economic slowdown, particularly in the EU, and the demand for textile items has decreased. Orders in the sector decreased from the previous year. It’s anticipated that large businesses will experience a drop in turnover of between 10 per cent and 30 per cent.
