The Indian government is mulling to come up with some supporting plan as Indian textile exports fell for the fifth straight month with the textile sector showing signs of dismay. The global prospects according to Mckinsey also look challenging.
The $200 billion Indian textile and apparel industry is in crisis as orders from the United States, and Europe are lower than usual. Consumers in all major textile and apparel markets have cut spending due to high inflation.
The Indian economy in general is strong and outperforming major economies. But its textile sector is an exception due to reduced orders. The downturn is expected to continue well into 2023.
This has raised the risk of large layoffs.
The textile sector employs more than 45 million people.
Export-oriented industries have been hurt more. The Indian textile industry exports 22 percent of its production and the exports are declining for the last five months. In November the decline was over 15 percent over the exports executed during the same month last year. Even the local sales are not encouraging despite healthy growth in the economy.
 Manufacturers blame high manufacturing costs in India and cheap imports of garments have impacted their sales.
Narendra Modi’s government on its part has accelerated its efforts to quickly sign free trade agreements with developed economies under which India insists on zero rates access to its textiles and apparel. More exports will create employment for millions of youngsters entering the job market each year.
