From Apr’23-Feb’24, India recorded a decline in its textile exports, as per the data by government sources. The sources attributed this decline to lack of international demand and geographical challenges like the Red Sea conflict.
Additional factors such as order flow, inventory management, and the availability of shipping containers and vessels, also seems to have influenced India’s textile exports during the period, influencing export figures.
The value of readymade garments exports dwindled to $13.05 billion during the mentioned period, down from $14.73 billion the previous year. Similarly, yarn shipments decreased from $4.47 billion to $4.23 billion, while jute exports fell from $400 million to $310 million. However, in Feb’24, India’s textile exports grew by 12 per cent compared to the same period in 2023.
Meanwhile, textile exports had declined in Jan’24 on account of a 20 per cent increase in shipment costs and a two-week extension in turnaround time, attributed to reduced services by two private shipping lines amid the Red Sea crisis.
An inter-ministerial panel convened multiple meetings to devise strategies to address the repercussions of the ongoing conflict. The responsibility of ensuring uninterrupted credit flow to exporters was given to the Department of Financial Services (DFS), while the Ministry of Shipping was asked to closely monitor trade volumes.
