India's textiles export grew 17% in February: CITI

The textiles industry in India is celebrating a significant uptick in exports, particularly in key segments like cotton yarn, fabrics, and made-ups. According to data released by the Confederation of Indian Textile Industry (CITI), exports for February marked a robust 17 per cent growth compared to the previous year, showcasing a positive trend for the 11-month period of the current financial year.

This growth not only suggests a promising outlook for the textiles sector but also highlights the resilience of Gujarat's textile industry, which has seen substantial growth in exports of cotton yarn, fabric, and made-ups. However, while February showed impressive growth, the overall picture for the April 2023 to February 2024 period is mixed. Textile exports have modestly increased by 1.75 per cent year-on-year but apparel exports witnessed a notable decline of 11.42 per cent during the same timeframe, leading to a cumulative decrease of 4.25 per cent in exports compared to the previous fiscal year.

Experts attribute the positive trajectory in cotton yarn and fabric exports to India's competitive cotton prices, which have boosted demand in international markets, particularly from countries like Bangladesh and China. Gujarat, with its significant share in these exports, has notably benefited from this trend.

Conversely, the apparel segment faces challenges such as heightened input costs and subdued demand in various countries amidst soaring inflation. Bharat Chhajer, Former Chairman, Powerloom Development and Export Promotion Council (PDEXCIL) points out, geopolitical tensions, including the conflict between Russia and Ukraine, along with the Red Sea crisis, have further escalated business costs and pricing pressures.

Additionally, stiff competition from nations like Vietnam and Bangladesh, combined with the reduction in cotton prices, and has impacted the value of apparel exports from India.

While the textiles industry celebrates its recent export successes, attention must be paid to addressing the challenges faced by the apparel sector to ensure sustained growth and competitiveness in the global market.