Indian textile exports to surge in 2024, cotton yarn a key driver.

The Indian textile industry is expected to see significant developments in 2024, with a resurgence in export demand particularly ready-made garments (RMG), says a report by B&K Securities.. Despite domestic challenges, including moderate consumer spending and overstocking, the export market shows promise, with factors like Western retailers restocking and increased demand for spring-summer collections driving demand. India's competitive edge in cotton yarn, with stable prices and reliable supply is set to enhance its global position.

The ongoing geopolitical challenges, such as Bangladesh's crisis, offer a temporary boost for Indian exporters, although long-term benefits will be determined by shifts in global supply chains away from China and Bangladesh. In the home textiles sector, the China+1 strategy and India’s cost advantages in cotton yarn continue to strengthen its foothold in the US market. Additionally, ongoing FTA negotiations with the UK and the EU could open up new avenues for growth. However, the industry must navigate near-term challenges, including logistical disruptions and uncompetitive domestic cotton prices, while also addressing sustainability demands to stay relevant in Western markets.