There’s palpable optimism in India as exports of apparel and textile have picked up, defying years of stagnant growth or decline.
Following the general election in India, the government laid out a plan for a 100-day period of focus on the industry. That initiative, which began in September, is expected to boost growth to $350 billion.
More from Sourcing Journal
-
Container Market's 'Sustained Demand' Banks $2.7 Billion Profit for CMA CGM
-
Kasturi Cotton: Redefining Excellence in Indian Cotton and Textiles
Recently appointed textiles minister Giriraj Singh spoke to the country’s 2030 roadmap for the sector. With a goal of about $250 billion in sales for the domestic market and $100 billion in exports, the textiles and apparel industry is expected to generate millions of jobs, he said. As a part of the government’s transformative vision, the Ministry of Textiles had engaged in several initiatives during the first 100 days of the new government, including strengthening infrastructure, focusing on technical textiles, bolstering natural fiber sectors and more.
Between April and September, exports for textile and apparel were up more than 5 percent over the previous year, reaching $17.6 billion. Textile exports grew 2.76 percent to a little over $10 billion while apparel exports grew by 8.5 percent to $7.5 billion, according to figures from the Ministry of Commerce and Trade.
September saw overall growth up by over 12 percent, while apparel exports alone surged by about 17 percent. Textiles and apparel account for around 8 percent of India’s total exports.
During the last financial year, textiles and apparel saw a decline of 3.2 percent to $34.4 billion. Apparel exports declined by 10.25 percent to $14.5 billion from $16.1 billion, while textile exports grew a marginal 2.6 percent to $19.8 billion.
“It’s too early to celebrate,” an apparel manufacturer in New Delhi told Sourcing Journal. “There are too many variables at this time, there is a lot to be addressed to really help and change the way we are looking at the industry. The industry really needs to be given much more focused attention to help it, the way it is done in some neighboring countries. But maybe we can break the time warp we were stuck in, there’s a definite shift now.”
Mithileshwar Thakur, secretary general Apparel Export Promotion Council (AEPC), told Sourcing Journal that Indian apparel exports were now on a “high growth trajectory.”
“We have started harnessing the untapped potential and have been logging double-digit growth in apparel exports in the last few months in spite of geopolitical challenges and consequent supply chain disruptions. India is clearly at the cusp of global attention, and the world has started looking at India as a preferred sourcing destination,” he said.