Rise in India’s textile and garment export in May accredited to apparel segment

India’s overall textile and garment exports witnessed 20 percent in May, of which export of textile products grew at a much slower pace than that of garments. While apparel shipments gained 24.9% in May, textile exports grew by just 8.6% due to apparel segment’s outstanding performance at shows following a spur demand in the US market as well as a weak rupee.

The overall textile and garment exports, including fibre shipments, hit $3.06 billion in May, compared with $2.55 billion a year earlier. Consequently, the exports in the first two months of FY15 climbed 18% to $5.99 billion against $5.07 billion a year earlier. Garments made up for 47% of such exports.

According to DK Nair, secretary-general, Confederation of the Indian Textile Industry (CITI), textile exports have been affected by slower purchases by China, as it accounts for 40% of Indian cotton yarn exports. However, the festive season demand will boost domestic consumption of textile items and a weak rupee would help exports. He further adding that if China improves its appetite in the coming months it would further brighten export prospects. The rupee has depreciated 3.4% against the dollar since June this year.

In FY14, the rupee depreciation and steady orders from the US drove up overall textile and clothing exports to $39 billion, compared with $34 billion a year earlier. However, the exports were still lower than the target of $43 billion for 2013-14 as demand recovery in the European market was slow due to a financial crisis. Textile exports are dependent on Chinese demand while the growth in garment exports spins around the US and the EU markets.