India is expected to sustain its momentum in apparel export growth in the coming months, following impressive gains recorded in October 2024. Apparel exports increased by 35.06 per cent compared to the same period last year. However, the slow growth in textile exports, including yarn, fabric, and made-ups, may persist as the country faces challenges from rising production costs. High prices for cotton and man-made fibres make Indian exporters less competitive, while the domestic garment industry cannot absorb the large volumes of textile production.

According to the latest official trade data, India’s apparel exports rose by 11.60 per cent to $8.732 billion during April-October 2024, the first seven months of the 2024-25 fiscal (April-March). In October 2024 alone, apparel shipments surged by 35.06 per cent to $3.061 billion.

India’s apparel exports saw strong growth, rising 35.06 per cent in October 2024 and 11.60 per cent in April-October, driven by increased orders from the US and UK.
However, textile exports grew modestly due to high production costs and uncompetitive fibre prices.
Government policies and expensive raw materials hinder competitiveness in yarn and fabric exports.

In contrast, textile exports increased by a modest 4.01 per cent to $11.988 billion during the same period. Exports of man-made yarn, fabrics, and made-ups rose by 4.36 per cent to $2.843 billion. For October 2024, textile exports increased by 6.96 per cent to $1,045.57 million, while man-made yarn, fabrics, and made-ups saw a sharper rise of 12.89 per cent to $438.03 million.

Commenting on the robust growth in garment exports, K M Subramanian, President of the Tiruppur Exporters Association, attributed the current momentum to various factors, including potential trade developments and geopolitical dynamics in the region. He projected revenue growth from ₹35,000 crore ($4.141 billion) in fiscal 2023-24 to ₹40,000 crore ($4.733 billion) in fiscal 2024-25.

He said that the region’s 5,000 export units are currently running at 95 per cent capacity, a significant improvement from just months ago when they were operating at 60-65 per cent capacity. The region received more orders from the United States and United Kingdom.

He also highlighted that the 5,000 export units in Tiruppur are now operating at 95 per cent capacity, a significant improvement from the 60-65 per cent capacity utilisation seen just months ago. The region has benefitted from increased orders from markets such as the US and the UK.

However, northern India, particularly the Delhi NCR region, continues to face slow to average growth in garment exports. According to industry sources, southern states like Tamil Nadu, which includes Tiruppur, have attracted more export orders that might otherwise have gone to Bangladesh. Tamil Nadu has long been recognised as India’s leading garment export hub, while Delhi NCR is rapidly emerging as a key player. Additionally, other regions and large integrated textile companies are working hard to secure a share of the global garment export market.

India’s primary concern remains the sluggish export of textile products like yarn and fabric. Despite a recent increase in ICE cotton prices, Indian cotton remains 12-14 per cent more expensive, rendering Indian yarn and fabric less competitive globally. The narrowing price gap has helped improve cotton yarn and fabric exports to some extent, but challenges persist. Government policies, including the Quality Control Order (QCO), anti-dumping duties, and minimum export price (MEP) requirements, have raised the prices of polyester and viscose fibres and yarns, further reducing the competitiveness of man-made textiles.

Industry experts noted that India has substantial spinning, weaving, and processing capacity, producing far more yarn and fabric than the domestic garment industry can consume.

Fibre2Fashion News Desk (KUL)