India’s textile and garment sector is experiencing significant growth, with key exports rebounding amid challenges within international markets. According to data released by the government on November 15, 2024, apparel exports surged by 35% year-over-year in October, alongside an 11.56% increase in textile exports. The current situation is largely shaped by recent turmoil in Bangladesh, prompting global buyers to seek reliable suppliers, with India being positioned as the foremost alternative.
Rakesh Mehra, the Chairman of the Confederation of Indian Textile Industry, noted various factors contributing to this boost, such as India’s increasing market share within the U.S. textile market, supportive government policies, and its growing reputation as a preferred sourcing destination. He emphasized the necessity of maintaining high-quality standards and sustainability practices within the industry.
Further underlining the success of India’s ready-made garment (RMG) industry, Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), highlighted how the sector has thrived under global pressures like wars and economic disruptions, showcasing resilience and adaptation to market needs. “Our strong focus on quality and sustainability has positioned us advantageously to overcome these challenges,” Sekhri said.
One prime example of India's export prowess can be seen through data reflecting garment exports to the U.S., which reached $2.56 billion from April to September this year alone. A. Sakthivel, from the Apparel Export Promotion Council’s Southern Regional branch, plans to persuade the Indian government to establish a Free Trade Agreement (FTA) with the United States. He believes this would significantly aid Indian exporters. "India could expand its RMG market share considerably with an FTA, especially now with favorable developments post-regime change in the U.S.,” he remarked.
India's cumulative overall exports from April to October 2024 stand at approximately $468.27 billion, marking an impressive 7.28% increase compared to $436.48 billion from the same period last year. Key players within the industry believe if current trends persist, RMG exports may increase by around 15-20% by the end of fiscal year 2024. Sakthivel anticipates Tiruppur, known for its knitwear production, could potentially reach export figures of ₹40,000 crore this year.
Notably, around 30% of Tiruppur's knitwear exports go to the U.S., making the proposed FTA particularly advantageous for local exporters. KM Subramanian, President of the Tiruppur Exporters Association, emphasized the need for government support to compete with exporters from other countries.
The ground situation reflects changing dynamics, with Indian manufacturers now noticing increased orders from clients shifting their sourcing strategies due to instability elsewhere. Mithileshwar Thakur, AEPC Secretary General, believes this window of opportunity requires sustained governmental support to fully capitalize on shifting trade practices. He remarked, "With the global supply chain being disrupted, we have to position ourselves as the reliable alternative to countries like China and Bangladesh, and the government must facilitate this shift.”
Looking forward, the AEPC is preparing for the launch of ‘Bharat Tex 2025’, touted as India's biggest textiles fair. This event aims to attract global executives and buyers who are eager to connect with potential suppliers across the Indian textile spectrum. Sekhri noted, "The positive sentiments and responses from international markets have been encouraging as we prepare to showcase our capability as a sourcing hub.”
Support for the garment sector is not just seen as beneficial for manufacturers but also as pivotal for job creation within the country’s labor force. The sector is known for its labor-intensive nature and has resiliently navigated challenges during economic downturns.
One major highlight from the recent uptick is how well Indian exporters have leveraged their focus on sustainable practices. The industry is increasingly being recognized for its commitment to ethical sourcing and environmental stewardship, drawing the attention of buyers who prioritize sustainability. Rakesh Mehra pointed out, “We have aligned our processes to reflect modern expectations of sourcing, and as buyers reconsider their partnerships, our firm commitment to sustainability can offer us leverage.”
Timely deliveries and quality products, paired with strategic investments, are expected to remain focal points moving forward. Industry leaders express optimism about the future, believing the current pivot by international partners could lead to sustained growth. “This is not just a one-off occurrence but could set the stage for long-term collaborations,” suggested Sekhri.
Such optimistic growth prospects come at a time when many neighboring countries like Bangladesh are facing significant pressures, making India appear as the preferable textile sourcing ally. The anticipation for the upcoming textiles fair and the proposed FTA with the U.S. suggest promising avenues for India's textile exporters. With these developments, the stage is set for India's garment and textile industry to potentially expand its influence globally, driven by quality, sustainability, and strategic partnerships.
