West’s demand for summer wear boosts India’s textile exports by 5.4% in April-May

New Delhi: Higher demand for summer clothes in the Western world has boosted India’s textile exports to $5.86 billion in the first two months of FY25, an increase of 5.4% from $5.56 billion in the same period a year ago, commerce ministry data showed. Exports of cotton yarn, fabrics, and handloom products increased 8.24% to $1.95 billion in April-May from $1.8 billion a year ago.

This increase in demand is due to various factors, including a post-pandemic recovery in consumer spending, a preference for lightweight and breathable fabrics during warm months, and the increasing popularity of sustainable and ethically produced garments from India.

A surge in readymade garment exports also contributed to the growth. The export value of readymade garments rose 4.47% to $2.55 billion in April-May 2024 from $2.4 billion in April-May 2023. Handcrafts and handmade carpets saw remarkable growth as well, with exports climbing 11.49% to $273.66 million from $245.46 million. Carpet exports alone rose 11.76% to $241.81 million from $216.37 million.

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A senior government official, who wished not to be named, said, “The positive export trend is expected to continue, further strengthening the textile sector and contributing to the overall economic growth of the country.”

Queries emailed to the textiles secretary and a spokesperson for the ministry remained unanswered.

Countries that import Indian textiles include Germany, Sweden and Spain. Germany saw its imports rise by 6.32%, from $210.35 million in April-May 2023 to $223.65 million in April-May 2024. Sweden's imports increased by 15.13% from $35.24 million to $40.57 million, while Spain's imports grew by 4.41%, from $180.56 million to $188.52 million.

Textile exports have fallen since 2018

Meanwhile, the Indian government plans to include more products, such as t-shirts and innerwear, in the nearly ₹11,000-crore production linked incentive (PLI) scheme for the textile sector, as Mint first reported on 18 June.

It plans to tweak the PLI scheme, approved in September 2021, to make it more effective as India's textile exports actually declined 11.69% from $16.24 billion in 2018 to $14.34 billion in 2023. India is among the world’s top producers of cotton and jute and the second-largest silk producer. About 95% of the world's hand-woven fabric is made in the country.

Ajay Sahai, director general of the Federation of Indian Export Organisations, said, “Apparel and textile exports are expected to do well in the coming months. Recently signed free-trade agreements and those in the pipeline are quite robust. Inquiries are also flowing from the US as the threat of further duties on China is looming in importers' minds.”

“However, logistics disruption could be a spoiler. Sea freight and air freight rates have increased tremendously and may go up further, hinterland states are facing container shortages, some shipping lines are skipping our ports, and not enough air freighters are operating to take care of demand.”

Also read: Govt OKs ₹10,683 crore PLI plan for textiles

The textiles ministry hopes to attract investments worth ₹95,000 crore, which it believes could create about 2.25 million new jobs in the next four to six years.

It’s also looking to increase India’s footprint in technical textiles, a growing market. India currently exports technical textiles, including medical apparel, worth about $2.5 billion and has a target of $10 billion in the next five years. The government has also approved grants of ₹50 lakh each for seven startups in the technical textiles sector under the National Technical Textiles Mission (NTTM).

Also read: India issues quality orders on textiles to take on China