India’s textile and clothing exports, including handicrafts, grew by 1% to Rs 2.97 lakh crore (US$ 35.5 billion) in FY24, with readymade garments accounting for the largest share at 41%.
The industry faces challenges such as small scale of operations, fragmented production, high transportation costs and dependence on imported machinery.
India’s textile and clothing exports, including handicrafts, grew by 1% to Rs 2.97 lakh crore (US$ 35.5 billion) in fiscal 2023-24 (FY24), according to the Economic Survey released today by the Ministry of Finance.
Readymade garments accounted for the largest share at 41%, with exports of Rs 1.2 lakh crore (US$ 14.34 billion), followed by cotton textiles (34%) and man-made textiles (14%).
The survey document projects India’s real gross domestic product (GDP) at 6.5%-7% in FY25.
The report points out several challenges facing the textile and clothing industry.
Since most of the country’s textile and apparel production capacity comes from micro, small and medium enterprises (MSMEs), which account for more than 80% of the industry, and the average size of operations is relatively small, the efficiency and economies of scale benefits of large-scale modern manufacturing are limited.
The fragmented nature of India’s apparel industry, with raw materials mainly sourced from Maharashtra, Gujarat and Tamil Nadu, while spinning capacity is concentrated in the southern states, increases transportation costs and delays.
Other factors, such as India’s heavy reliance on imported machinery (except in the spinning sector), a shortage of skilled labor and obsolete technology, are also important constraints.
Post time: Jul-29-2024