Indian cotton textile exports rise despite global headwinds
India's cotton textile exports witnessed a significant increase of 7.94 per cent year-on-year to $8.52 billion from April to January 2024, according to data from the Texprocil (The Cotton Textiles Export Promotion Council). This growth comes despite global headwinds including rising cotton prices and a slowdown in the US and European economies, the industry's main export markets.
Yarn exports driving growth
The growth is being driven by a surge in cotton yarn exports, which have increased by 45.05per cent to $3.12 billion. Raw cotton exports have also seen a significant increase of 24.64per cent to $729.40 million. This growth can be attributed to factors like rising global demand for textiles and increasing preference for cotton clothing due to its breathability and comfort.
However, there has been a decline in cotton fabrics and made-ups exports. Cotton fabrics exports have decreased by 13.60per cent to $1.84 billion, while cotton made-ups exports have dipped by 1.50per cent to $3.56 billion from April-January 2023-24 compared to the same period in the previous year. This decline could be due to a number of reasons, including increased competition from other textile producing countries, or a shift in consumer preferences towards other types of fabrics.
US still dominant market
The top markets for Indian cotton textiles are the US, Bangladesh, and China. The US remains the largest market for Indian cotton textiles, with a share of 25.03 per cent of total exports. However, China has seen the most significant growth in imports of Indian cotton textiles, with a staggering increase of 450.55 per cent. “This diversification of export markets is a positive sign for the Indian cotton textile industry,” says chairman of the Texprocil. "It helps to mitigate risks associated with a dependence on a few major markets."
Despite the positive overall outlook, the industry faces some challenges. The rising price of cotton, a key input material, could put a strain on margins. Additionally, the slowdown in the global economy could dampen demand for Indian cotton textiles in the coming months.
Overall, the Indian cotton textile industry is well-positioned for continued growth in the coming years. The industry's ability to adapt to changing market conditions and exploit new opportunities will be key to its future success.