Textile exports down for second year in FY24

CHENNAI: India's textile exports took a hit for the second consecutive year in 2023-24 as geopolitical issues cast a shadow on the global economy.
Exports stood at $34.4 billion in FY24, dropping over $1 billion (3%) against FY23. Compared to FY22's $41 billion, exports recorded 16.3% fall.
In the overall textiles sector, the segment comprising cotton yarn, fabs, madeups and handloom products alone witnessed a significant YoY increase in exports by $740 million in 2023-24 over 2022-23 due to the surge in export of cotton yarn during the last fiscal.While North America topped the total textile exports at $11 billion, it is followed by Europe at $10 billion and West Asia and North African countries accounted for $4 billion, data available with NIRYAT portal of the Union ministry of commerce and industry revealed.
Israr Ahmed, vice president, Federation of Indian Export Organisations (FIEO) said, the overall western economy has taken a hit, especially in terms of recession in some parts of the globe. "This has caused a drop in consumer confidence in those countries. The persisting Red Sea crisis has escalated sea freight by about 100%, while air freights have gone up by up to 200% due to the demand for ferrying goods through air cargo. However, the fall in textile exports is being corrected since the decrease in exports between FY22 and FY23 has reduced when compared with FY24," he told TOI.
The knitwear capital of India, Tirupur, is feeling the pinch of it. Former president of Tiruppur Exporters Association Raja M Shanmugam says, exports from the textile hub have plunged from $4 billion in FY22 to $3 billion in FY24. "Our exports to the US and Europe has been affected as purchasing new value-added garments has become the least priority for customers particularly in Europe. The situation in Tirupur is worse than in Covid, which is unprecedented and unwarranted. Govt should announce Govt Emergency Credit Line Guarantee Scheme for the textile sector to prevent the MSMEs from exiting their business and moratorium for their dues for six months," he said.
Readymade garments, which share 42% of the combined textiles exports, have decreased by 10% in FY24 over the previous year. Mithileshwar Thakur, secretary general, Apparel Exports Promotion Council said $14.5 billion worth of apparels were exported in FY24. "The past two months have seen a recovery despite global headwinds. The industry is bullish that the value of exports will reach $20 billion in the current fiscal because we are hopeful of FTAs signed between India, the UK and the EU," he added.