India's cotton textile exports dip despite a rise in production

India's cotton textile exports have declined significantly over the past two years, despite a rise in domestic cotton production. In the fiscal year 2023-24, the country's cotton textile exports fell by nearly 29 per cent compared to the previous year. Key export markets like the US, Bangladesh, China, Sri Lanka, and the UAE witnessed a decrease in demand for Indian cotton products.

Gujarat, the leading cotton-producing state, experienced a 20 per cent increase in production during the same period. However, the state's cotton textile exports dipped by 20 per cent as well. Maharashtra, the second-largest producer, saw a slight decline in production.

To boost exports, the Indian government is implementing various measures, including the RoSCTL and RoDTEP schemes to provide tax benefits to exporters. Additionally, the government is organizing the Bharat Tex 2025 mega textile show to showcase India's textile capabilities to global buyers. The country has also signed numerous Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) to facilitate market access for its textile products.

Despite these efforts, the Indian cotton textile industry faces challenges such as rising input costs, global economic uncertainties, and increasing competition from other textile-producing nations.