India’s textile and apparel exports to rise 1% to $35.5 billion in FY2024: Economic Survey

India’s exports of textiles and apparel, including handicrafts, rose 1 per cent in fiscal year 2023-24 (FY24) to ₹2.97 lakh crore (~$35.5 billion), according to the Economic Survey released today by the Ministry of Finance.

Ready-made garments accounted for the largest share of 41 percent, with an export value of ₹1.2 lakh crore (~$14.34 billion), followed by cotton textiles (34 percent) and man-made textiles (14 percent).

India’s textile and garment exports, including handicrafts, rose 1 percent in FY24 to ₹2.97 lakh crore (~$35.5 billion), with ready-made garments accounting for the largest share at 41 percent. The sector faces challenges such as small-scale operations, fragmented production, high transportation costs and dependence on imported machinery.

The research paper projected India’s real gross domestic product (GDP) to be 6.5-7 per cent by fiscal year 2025.

The report identified several challenges for the textile and clothing sector.

Since most of the country’s textile and garment production capacity comes from micro, small and medium-sized enterprises (SMEs), which account for more than 80 percent of the sector, and the average size of operations is relatively small, the efficiency and economies of scale of large-scale modern production are limited.

The fragmented nature of the Indian apparel sector, with raw materials sourced primarily from Maharashtra, Gujarat and Tamil Nadu while spinning capacity is concentrated in the southern states, contributes to higher transportation costs and delays.

Other factors such as India’s heavy dependence on imported machinery (except in the spinning segment), inadequate availability of skilled labour and obsolescence of technology also pose major constraints.

The central government will set up seven PM Mega Integrated Textile Region and Apparel (MITRA) parks with a budget of ₹4,445 crore ($0.531 billion) in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra between FY 2022 and FY 2028.

The National Technical Textiles Mission (NTTM) has been launched with a budget of ₹1,480 crore ($0.177 billion) for FY21-24 and aims to increase the use of technical textiles across sectors.

It has four components: research, innovation and development; promotion and market development; education, training and skills; and export promotion. It has been extended until March 2026, with a sunset clause until March 2028.

According to the Economic Survey, 137 research projects have been approved for NTTM so far, worth a total of ₹474 crore (USD 56.65 million).

The National Handloom Development Programme (NHDP) has approved an expenditure of ₹998 crore ($119.3 million) for the period FY 2022 to FY 2026.

In FY24, the government has taken steps to set up 96 small handloom clusters. Nine mega handloom clusters have also been set up.

Fibre2Fashion News Desk (DS)