Textile industry needs to focus on international markets to be more competitive

The Union Minister for Textiles, Consumer Affairs, Food and Public Distribution, and Commerce & Industry, Piyush Goyal during his address at the CITI Textile Sustainability Awards 2024 said that the textile industry needs to focus on the international markets that will push them to be more competitive. He said that the Bharat Tex 2024 event is a testament to the capability of the sector to be a leader in the future at a global stage. He expressed confidence that working together and understanding the elements of the value chain will help the textile industry be the driving force of the nation’s GDP.

India’s textiles and garments exports have declined over the last five years by 7.6 per cent

India’s textiles and garments exports have declined over the last five years by 7.6 per cent to $34.24 billion in calendar year 2023 from $37.16 billion in 2018, with China, the EU, Bangladesh and Vietnam dominating global garments trade, says a report by research body Global Trade and Research Initiative. In the same five-year period, India saw a 25.46 per cent increase in textile and garment imports to $9.18 billion in 2023 from $7.32 billion, indicating a domestic demand unmet by local production.Steps that could help improve competitiveness of Indian textiles include promoting production and export of synthetic apparels, strengthening weaving and processing sectors, simplifying fabric supplies/imports, negotiating possible non-tariff barriers in FTAs, liberalising labour laws and making more factories fast fashion industry (FFI) compliant, the report proposed. In 2023, India’s garment exports were a $14.5 billion, significantly trailing behind China ($114 billion), the EU ($94.4 billion), Vietnam ($81.6 billion) and even Bangladesh ($43.8 billion), the report pointed out.

Outlook:

The sharp recovery in local textile output in December 2023 could ensure steady supplies of ready-made garments in local markets though the global trend remains challenging. The soaring Cotton prices are likely to keep the overall sentiment mixed for the textile sector. Cotton prices in India jumped to a 9-month high above the Rs 60,000 per candy mark. Global Cotton prices are also soaring and currently linger at an 18-month high.

After falling to the lowest ever production in the last 15 years at 29.41 million bales in the 2023-24 season, the next year might also not look particularly good for the cotton crop with overall sowing projected to drop by almost 10 per cent due to falling yields and low price realisation, an assessment done by the Cotton Association of India (CAI) showed. Cotton marketing season runs from October to September, and the crop is largely cultivated during the kharif season after the advent of monsoons. CAI’s latest crop committee report shows that in the 2023-24 season, cotton production in India is expected to be eight per cent less than in 2022-23.

Globally, the cotton prices had surged despite a supply surplus. According to the International Cotton Advisory Committee (ICAC), global cotton production would likely exceed consumption for the second consecutive year. Global cotton lint production is expected to grow by 3.25% to 25.4 million metric tons in the 2023-2024 season, while consumption is forecasted to marginally decline to 23.4 million metric tons.