India’s textiles and garments exports have declined over the last five years by 7.6 per cent to US $ 34.24 billion in calendar year 2023 from US $ 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.
The paper titled ‘Regaining textile glory’ claimed that during the same five-year period, India had a 25.46 per cent increase in textile and garment imports, rising from US $ 7.32 billion to US $ 9.18 billion in 2023. This suggests that domestic demand is not being supplied by local production.
The report suggested several actions that could help boost the competitiveness of Indian textiles: encouraging the production and export of synthetic clothing; fortifying the weaving and processing industries; streamlining the import and supply of fabric; negotiating potential non-tariff barriers in free trade agreements; liberalising labour laws; and requiring more factories to comply with the fast fashion industry (FFI).
The analysis highlighted that India’s garment exports in 2023 amounted to a meagre US $ 14.5 billion, considerably lagging behind the likes of China (US $ 114 billion), the EU (US $ 94.4 billion), Vietnam (US $ 81.6 billion), and even Bangladesh (US $ 43.8 billion).
“This shows India significantly trails behind China and the EU and is also falling behind smaller countries like Bangladesh and Vietnam. From 2013 to 2023, Bangladesh’s garment exports grew by 69.6 per cent, Vietnam’s by 81.6 per cent, but India’s grew by only 4.6 per cent,” it added.
The research went on to say that in order to achieve the quality criteria, only large units equipped with the newest technology could strengthen the weaving and process.
To capitalise on the fast fashion industry (FFI), which comprises big players like Walmart, Zara, H&M, Gap, and online retailers like Amazon and Zalando, Indian exporters must likewise keep up with its fast-paced needs.
Other recommendations made in the research included loosening labour regulations to support large units and negotiating non-tariff obstacles in its prospective free trade agreements with countries like the UK and the EU, both of which are crucial for real advantages.