India Ascends as Textile Export Powerhouse Amid Global Challenges

India becomes the 6th largest textile exporter with a 3.9% global trade share. The first half of FY 2024-25 saw export growth at 7%, totaling USD 21,358 million. Ready Made Garments lead with USD 8,733 million. Cotton and man-made textiles follow closely. Import dependency decreases as domestic production rises.

In a significant stride, India has emerged as the world's sixth-largest exporter of textiles and apparel, capturing a 3.9% share of global trade. This sector now contributes 8.21% to India's total exports, highlighting the nation's pivotal role in the global textile supply chain.

The first half of the fiscal year 2024-25 witnessed India's textile and apparel exports soar to USD 21,358 million, marking a notable 7% increase compared to the same period of the previous year, according to data from the Ministry of Textiles.

Ready Made Garments (RMG) marked the leading segment in this export spike, making up 41% of India's total textile exports, tallying USD 8,733 million. Cotton textiles contributed 33% with USD 7,082 million, and man-made textiles accounted for 15% at USD 3,105 million.

The United States and the European Union remain top destinations, securing approximately 47% of India's textiles and apparel exports. The sector's growth is bolstered by sustained demand despite global geopolitical tensions such as the Red Sea crisis and Bangladesh crisis, which had initially hindered exports in early 2024.

As the year advanced, demand picked up, especially in key commodity categories. From April to October 2024, RMG exports grew by 12%, cotton textiles by 1%, and man-made textiles by 5%. However, wool and handloom exports declined, with wool dropping by 19% and handloom products by 6%.

On the contrary, silk products exports surged by 40%, while carpets experienced a robust 12% growth. Additionally, India's import of textiles plummeted by approximately 15% in FY 2023-24, suggesting a trend toward greater self-reliance as domestic raw material production rises to meet industry demands.

In the initial half of FY 2024-25, textile imports, including handicrafts, dipped by 1% to USD 5,425 million. Man-made textiles continued to dominate imports, contributing 34% at USD 1,859 million. An increased need for long-staple cotton fibers drove cotton textile imports up by 13%, reflecting a boost in domestic production and consumption.

(With inputs from agencies.)