While Pakistan saw a slump of over 14 percent in the fiscal year 2022-23, its immediate neighbor India continues on a downward slide in textiles as its exports declined by 15.26 percent in the first quarter of 2023-24.
The Indian fiscal year starts from April. Its exports during April-June 2023 declined to $8. Industry players attribute the decline to weak demand and high prices of cotton. The weak demand has impacted the entire textile value chain from ginning to spinning, weaving and apparel making. Last year, from April to June, textiles and apparel exports were worth $9.9 billion, which has decreased by about 15% to $8.4 billion this year.
According to the Confederation of Indian Textile Industry (CITI), the exports of cotton yarn and fabrics, man-made yarn and fabrics, carpets, handicrafts, and apparel shrank from April to June. Indian textile industry has faced a tough time for more than a year because of volatile cotton prices and weak global demand, especially since the Russia-Ukraine war began.
Indian textile experts concede that the entire textile value chain is under pressure and is struggling to survive. Demand in the international and domestic markets has been low and this is seen in exports data as well.
The spinning sector is struggling because international demand is low and the price of Indian yarn is about Rs 235 a kg (30 comb variety) which is still 2 percent higher than international prices, making its yarn uncompetitive.
Textile exports make up about 10 percent of India’s merchandise exports. Textiles and apparel make up about 40 percent of total textiles exports, while home textiles and fabrics account for 18 percent and 13 percent, respectively.
