India's textile exports fall for second year in a row.

India's textile exports took a hit for the second consecutive year, dropping to $34.4 billion in 2023-24. This 16.3 per cent decline from 2021-22 is blamed on a sluggish global economy due to geopolitical tensions.

However, there's a silver lining. The cotton yarn, fabrics, and handloom segment saw a rise in exports, driven by a surge in cotton yarn. Geographically, North America remains the top importer of Indian textiles ($11 billion), followed by Europe ($10 billion) and West Asia/North Africa ($4 billion).

Experts point to a decline in consumer confidence in western economies, especially those facing recession. Rising shipping costs due to the Red Sea crisis further dampen exports.

Israr Ahmed, from the Federation of Indian Export Organisations, highlights a positive trend – the year-over-year decline is slowing down. He also sees hope in recent Free Trade Agreements (FTAs) and government initiatives to boost production.

Mithileshwar Thakur, of the Apparel Exports Promotion Council (AEPC), expects a rebound due to the FTAs and schemes like PLI (Production Linked Incentive). He cites recent uptick in exports and believes apparel exports can reach $20 billion this year.

The knitwear hub of Tirupur witnessed a sharp export decline, dropping from $4 billion to $3 billion. Raja Shanmugam, from the Tiruppur Exporters Association, blames reduced demand for value-added garments in key markets like the US and Europe. He urges government support for small businesses to prevent them from shutting down.

Overall, India's textile sector faces challenges, but there are signs of hope. FTAs, government initiatives, and a potential economic recovery could propel the industry forward.