As an important participant in the global textile and clothing trade, India firmly holds a 3.9% share of the global market and ranks sixth in the world in textile and clothing export. The textile industry is an important part of India's exports, accounting for 8.21% of the country's total exports, but it also plays an indispensable role in the global textile supply chain. In recent years, the Indian textile market has performed quite well, especially in export growth.
Growth Trend of Indian Textile Exports
According to data released by the Indian Ministry of Textiles, in the first half of fiscal year 2024, India's total textile and clothing exports reached US$21.358 billion, a year-on-year increase of 7%. Among them, the Ready-Made Garments (RMG) category continued to lead the export category with an export value of US$87.33 billion, accounting for 41%. It was followed by cotton textiles, accounting for 33%, with an export value of US$7.082 billion; and man-made textiles accounted for 15%, with an export value of US$3.105 billion.
In terms of major export markets, the United States and the European Union are the two key markets for Indian textiles, and the two together account for 47% of India's total textile exports. Despite many challenges facing the world, such as geopolitical issues such as the Red Sea and Bangladesh crises, India's textile exports have rebounded strongly, especially in 2024, with demand in major markets continuing to grow.
Category Changes in India's Textile Exports
From April to October 2024, India's textile exports showed different growth trends. The export of ready-made garments increased by 12%, cotton textiles increased by 1%, and the export of man-made textiles increased by 5%. However, the export performance of some traditional categories was poor, with wool products and hand-woven products falling by 19% and 6% respectively. However, the export performance of silk products and carpets was very eye-catching, with silk product exports increasing by 40% and carpet exports increasing by 12%.
Changes in Indian Textile Imports
Despite India's strong performance in textile exports, its textile imports are on a downward trend. In the 2023-24 fiscal year, India's total textile imports fell by about 15%, from US$10.481 billion in the previous fiscal year to US$8.946 billion. This change reflects India's continuous improvement in self-sufficiency in raw materials, which not only meets domestic demand but also forms a good foundation for exports.
In the first half of the 2024 fiscal year, India's textile imports fell slightly, down 1% year-on-year, with a total import value of US$5.425 billion. Among them, man-made textiles are still the largest category of imports, accounting for 34% of total imports, with an import value of US$1.859 billion, mainly due to the imbalance between supply and demand in certain textile categories in the domestic market. However, imports of cotton textiles increased by 13%, mainly due to the demand for long-staple cotton fibers.
Development of the Indian Textile Industry
With the continued development of the Indian textile industry, the industry's growth potential remains huge in the coming years. India's position in the global textile market is becoming increasingly important, especially in the fields of ready-made garments, cotton textiles, and man-made textiles. India's industrial advantages are not only reflected in its huge production scale but also in its gradually increasing self-sufficiency, which enables India to better cope with changes in the international market.
However, the Indian textile industry still faces some challenges, such as rising labor costs, insufficient technological innovation, and increasingly stringent environmental regulations. In order to maintain its advantage in global competition, India needs to further improve production efficiency, increase technological investment, expand emerging markets, and also pay attention to sustainable development and green production.
In general, the Indian textile market occupies an increasingly important position in the world. With its rich resources, strong production capacity and gradually improved industrial chain, India's future textile exports will continue to maintain a growth trend. With the continuous changes in market demand and the continuous innovation of technology, India's textile industry is expected to continue to play an important role in the global textile trade.
Conclusion
The continued growth of exports in the Indian textile industry is not only an important driving force for the global textile market but also brings important foreign exchange income to the Indian economy. Despite some challenges, the Indian textile industry still has great potential on the global stage due to its strong production capacity, resource advantages, and market demand, and deserves the attention and participation of global investors and textile companies.