Textiles and apparel exports registered a 12.2% year-on-year decline in May as the industry continued to face low demand in its key overseas markets including the U.S.
Textile exports shrank 11.8% from the year-earlier period and apparel exports contracted 12.7%. Jute products slumped 29.3%, while handicrafts and handmade carpets fell 21.1%.
India’s textile and apparel exports last month were in total valued at $2,816 million (as against $3,206 million in May 2022) and its share in all commodity exports declined to 8.05%, from 8.22% a year earlier.
The continuing decline in export of textiles and apparels was a matter of deep concern, said Siddhartha Rajagopal, Executive Director of Cotton Textiles Export Promotion Council.
Exports of textiles and apparel shrank 19.3% in March and 21.7% in April, according to data available with the Confederation of Indian Textile Industry.
“The main reason is the sluggish demand in major importing countries including the U.S., Germany, and the U.K. on account of inflation and also piled up inventory,” Mr. Rajagopal observed. “However, reports from the trade suggest that going forward, the situation is improving as exporters are slowly but steadily getting orders for supply of merchandise. With China also opening up after COVID there are expectations of good business opportunities especially for yarn and fabrics. Domestic cotton prices are also moderating giving hopes of higher sales from July/ August,” he added.
K.M. Subramanian, president of the Tiruppur Exporters Association, said while the U.S. market was improving, exports to the EU had not picked up as expected. “Our competing countries have duty free access and that gives... 11% cost advantage. That is why we want the free trade agreement with the U.K. to be expedited,” he added.
