India's cotton exports rise, imports fall

India's overall trade picture for June and Q2 2024 shows a mixed bag, with positive growth in overall exports but a widening trade deficit. While total exports (goods and services) grew 5.4 per cent YoY in June, reaching $65.47 billion, imports climbed to $73.47 billion, a 6.29 per cent increase.

Looking closer, the story for cotton is interesting. Exports of cotton yarn, fabrics, and handloom products saw a modest 0.92 per cent YoY rise in June, indicating some stability in this sector. However, imports of raw cotton dropped significantly by 26.16 per cent compared to June 2023. This suggests India might be relying more on domestic cotton production for its textile exports.

On the other hand, exports of man-made yarn and fabrics witnessed a healthy growth of 2.79 per cent in June. This indicates a potential shift towards synthetic alternatives in the textile industry.

The good news continues with some key export destinations showing strong growth. The US, UAE, Malaysia, Bangladesh, and Tanzania all saw significant increases in their imports of Indian goods, particularly during Q2. This diversification of export markets bodes well for India's textile sector.

Overall, India's trade presents both challenges and opportunities for the cotton and yarn industry. While import dependence on raw cotton seems to be decreasing, promoting domestic production and exploring synthetic alternatives could further strengthen the sector's export potential.