Indian cotton fabric exports up in volume but value dips in November 2023
Indian exports of cotton woven fabrics witnessed a slight increase in volume in November 2023, but the overall trend remains mixed. According to estimates by IndexBox, exports reached approximately 63 million square meters in November, reflecting a 4.3 per cent rise from October 2023. However, this uptick comes amidst a stagnant period for Indian cotton fabric exports. Despite a strong December 2022 with a 12 per cent month-on-month increase, exports haven't shown significant growth since February 2023. January 2023 marked the peak with 81 million sq m exported.
The financial side of the picture paints a different story. The value of cotton fabric exports from India dipped considerably to $134 million in November 2023. This follows a pattern of fluctuations throughout the year, with August 2023 recording the highest growth rate in value (13 per cent compared to the previous month). The decline is particularly notable when considering the record high of $180 million reached in March 2023.
Bangladesh remains the top destination for Indian cotton fabric exports, absorbing 28 per cent of the total volume. Sri Lanka and South Korea follow closely behind. While Bangladesh saw modest monthly growth (1.0 per cent), Sri Lanka experienced a slight decline (0.8 per cent). South Korea, on the other hand, exhibited a positive trend with a 2.0 per cent monthly increase. Looking at the value of exports, Bangladesh retains its position as the key market (27 per cent share), followed by Sri Lanka and surprisingly, Nigeria. Interestingly, Nigeria witnessed a significant 7 per cent monthly growth in imports of Indian cotton fabrics.
The type of cotton fabric exported also reveals interesting details. The majority of exports (68 per cent by volume and 63 per cent by value) consisted of woven fabrics made from cotton with at least 85 per cent weight composition, weighing under 200 grams per square meter. Fabrics exceeding 200 grams per sq. mt. and those blended with man-made fibers hold a smaller share of the export market.
Looking ahead, it remains to be seen if Indian cotton fabric exports can regain momentum and translate volume increases into a rise in export value. The performance in key markets like Bangladesh and the rise of new markets like Nigeria will be crucial factors to watch.
