TEXTILE AND APPAREL EXPORTS - ECONOMY
News: Textile
and apparel exports slide 12.2% on slack demand
What's in the news?
● 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.
Key takeaways:
● 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 $3,206 million in May 2022) and its share in all commodity exports
declined to 8.05%, from 8.22% a year earlier.
Reasons for the decline:
● The
main reason is the sluggish demand in
major importing countries including the U.S., Germany, and the U.K. on
account of inflation and also piled up inventory.
Positive signs:
● Reports
from the trade suggest that going forward, the situation is improving as
exporters are slowly but steadily getting orders for supply of merchandise.
● With
China also opening up after COVID
there are expectations of good business opportunities especially for yarn and
fabrics.
● Domestic
cotton prices are also moderating giving hopes of higher sales from July/
August.
Indian Textile and Apparel Industry:
● The
Indian Textile and Apparel Industry is valued at over US$ 100 billion, employing
over 45 million people and accounting for 14% of the country's industrial
production.
● India
is a global leader in producing several textile products, such as being the second
biggest producer of silk, cotton and Multimode Fibre (MMF).
● It
is also a world leader in jute
production, accounting for nearly 70% of global production.
● Additionally,
based on capacity, the country has the second largest vertically integrated
production base after China.
Stats of Textile and
Apparel Exports and Imports in India:
Top 3 Importing Countries from India:
Top 3 Exporting Countries from India:
Reference: Textile and Apparel
Exports