Textiles Secretary Rachna Shah has affirmed that the Indian government is poised to intensify efforts to bolster the country’s textiles exports, which faced a downturn for the second consecutive year in 2023-24. Despite challenges such as the Red Sea crisis, Shah remains optimistic about the sector’s prospects.
Ambitious Export Target Set
With an ambitious target of achieving $100 billion in textile exports by 2030, the government is gearing up its strategies to revitalize the industry. The latest data reveals a 3.24% decline in textile and apparel exports during April 2023-March 2024, amounting to $34.4 billion, compared to $35.5 billion in the previous fiscal year.
Challenges and Opportunities
Geo-political challenges persist, yet some exporters have reported improvements in order books during the first quarter. Shah highlights the necessity of directing attention towards products with high export potential, particularly those covered under the Production Linked Incentive (PLI) scheme.
Exploring New Avenues
In addition to focusing on existing markets, Shah underscores the importance of exploring newer markets. Free Trade Agreements (FTAs) with other nations are expected to unlock fresh opportunities for India’s textiles exports, potentially counterbalancing the competition from countries like Bangladesh and Vietnam.
Outlook and Prospects
Despite facing stiff competition due to factors like lower labor costs and larger operational footprints in rival nations, India remains optimistic about its prospects in the global garments trade. Shah predicts an upturn in exports, fueled by improving global demand and promising order positions for apparel and made-ups in the first quarter.
In conclusion, with concerted efforts and strategic interventions, the Indian government aims to rejuvenate the textiles sector, positioning it as a key player in the global market.