(MENAFN- KNN India)
New Delhi, Jul 27 (KNN)
India's textile exports have registered a 4.15 per cent year-on-year increase in the first quarter of fiscal year 2025, according to recent data released by the commerce ministry.
The sector saw exports rise to USD 8.78 billion, up from USD 8.43 billion in the same period last year.
The growth was primarily driven by increased demand from the Commonwealth of Independent States (CIS) and South Asian markets.
The CIS region, which includes countries such as Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, saw a substantial 113.33 per cent increase in exports, reaching USD 64 million. South Asia followed with a 35.65 per cent growth, totalling USD 898 million.
Latin American markets also contributed to the positive trend, with exports increasing by 15 per cent to USD 346 million, attributed to strengthened trade relations and rising demand for Indian textiles in the region.
However, the sector faced challenges in other markets. Exports to North East Asia and Africa declined by 28 per cent and 15.74 per cent respectively, highlighting the need for targeted strategies to address region-specific issues.
Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI), noted that the growth, while positive, is minimal and on a low base.
He attributed the uptick to improved sentiment in the U.S. economy and a shift in buyer preferences away from China and Bangladesh.
The textile industry plays a significant role in India's economy, contributing approximately 2.3 per cent to the country's GDP, 13 per cent to industrial production, and 12 per cent to exports.
India currently ranks as the world's sixth-largest exporter of textiles and apparel.
Looking ahead, a Crisil report projects growth for India's textile industry in calendar year 2024, citing factors such as consistent improvement in domestic demand, gradual recovery in exports, and lower cotton prices.
The main importers of Indian ready-made garments continue to be European nations, led by Germany, the Netherlands, Italy, Poland, and Denmark.
(KNN Bureau)
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