Europe Boosts Indian Textile Exports in FY25
Indian textile exports are witnessing recovery in 2024-25, with European markets playing a vital role in this resurgence. Data from the Ministry of Commerce and Industry shows an increase in demand for Indian handloom and apparel, partially driven by the ongoing economic challenges in Bangladesh.
Key Highlights
• Growth in Exports: During April-October FY25, India’s textile exports to Europe reached $5.66 billion, marking a 6.39% rise from $5.32 billion during the same period in FY24. However, it remains below the $5.84 billion achieved in FY23 for the same timeframe.
• Major Contributions: Ready-made garments accounted for $3.18 billion, while cotton yarn, fabrics, and handloom products contributed $1.10 billion.
• European Demand: Countries like Sweden, the Czech Republic, Switzerland, Finland, and the Netherlands emerged as key markets in 2023-24. Austria, Greece, and Slovenia also showed traction.
Factors Driving Growth
1. Bangladesh Crisis: The economic turmoil in Bangladesh has shifted demand toward Indian textiles, with European buyers seeking alternative suppliers.
2. India’s Edge: The country’s adaptability in manufacturing and innovation, coupled with a focus on sustainable practices, has increased its competitiveness.
Projections for the Sector
• Market Growth: India’s textile and apparel market is expected to grow at a 10% CAGR, reaching $350 billion by 2030.
• Global Leadership: With one of the largest textile ecosystems, India is set to strengthen its position among top exporters globally, targeting $100 billion in exports by 2030.
Industry Experts' Insights
• Challenges Persist: Despite growth, Rahul Mehta, Chief Mentor of the Clothing Manufacturing Association of India, pointed out that logistical inefficiencies and international trade dynamics continue to hinder seamless trade.
• Sector’s Potential: Jitendra Srivastava of Triton Logistics emphasized the importance of this growth in maintaining momentum and enhancing India’s global competitiveness.
The rise in demand, coupled with proactive measures by the industry and government, is paving the way for India’s textile sector to regain its stronghold in global markets.
