India’s textiles and apparel (T&A) industry continues to hold a significant position on the global stage, contributing 3.9% to global trade and ranking as the 6th largest exporter in the world in 2023. In FY 2023-24, the sector, including handicrafts, accounted for a substantial 8.21% of India’s total exports, underscoring its importance to the country’s economy. The United States and the European Union remain key destinations, contributing approximately 47% of total T&A exports.
Despite initial setbacks caused by geopolitical challenges such as the Red Sea crisis and the Bangladesh crisis, which disrupted trade during January-March 2024, exports bounced back strongly. During the April-October 2024 period, India’s T&A exports (including handicrafts) grew by 7%, reaching $21,358 million, up from $20,007 million during the same period in FY 2023-24.
The Ready-Made Garments (RMG) segment led the growth, contributing $8,733 million (41%) of the total exports during this period, followed by Cotton Textiles at $7,082 million (33%) and Man-Made Textiles at $3,105 million (15%). While most segments experienced growth, wool exports and handloom products saw declines of 19% and 6%, respectively.
On the import side, India’s reliance on textiles and apparel imports reduced significantly in FY 2023-24, with total imports declining by 15% to $8,946 million, compared to $10,481 million in FY 2022-23. For the April-October 2024 period, imports saw a marginal decline of 1%, amounting to $5,425 million, compared to $5,464 million in the same period of the previous fiscal year.
Man-Made Textiles led imports with a share of 34% (valued at $1,859 million) during April-October 2024, reflecting a demand-supply gap in this category. Notably, cotton textile imports increased due to the rising demand for long-staple cotton fiber, which is vital for enhancing production capacity and meeting both domestic and international demand.
India’s textiles and apparel industry remains a beacon of resilience and adaptability. The sector’s steady export growth, despite global disruptions, coupled with strategic imports to bolster production capacity, positions India as a key player in the global market. As demand surges and self-reliance initiatives strengthen, the industry is poised for a brighter future, weaving a path to global success.
