Indian RMG exports rose 11% in January to US $11.57 billion despite Red Sea crisis delays.
In January, India witnessed a notable surge in the export value of ready-made garments, attributed to shipments overcoming delays caused by the Red Sea crisis. The Commerce Ministry’s data revealed an 11% increase in exports of ready-to-wear textile products, reaching US $11.57 billion compared to US $10.13 billion in December 2023. However, specific volume data for these shipments was not disclosed on the Ministry’s NIRYAT platform.
Despite a decrease in the total value of textile exports over the first ten months of the current fiscal year, down to US $27.69 billion from US $29.41 billion in the same period of 2022–2023, European nations emerged as significant purchasers of Indian ready-made garments. Notably, Denmark, Germany, the Netherlands, Italy, and Poland collectively experienced a 19% month-over-month increase, amounting to US $4.30 billion in January.
Rahul Mehta, president of the Clothing Manufacturers Association of India (CMAI), emphasised the broad impact of the Red Sea crisis, foreseeing increased expenses affecting not only India but also other major exporters like Bangladesh and China, ultimately driving up global trade costs.
The rerouting of shipments around the Cape of Good Hope in Africa has incurred elevated shipping expenses for Indian goods, with approximately 95% of vessels diverting from the usual route. This rerouting has extended voyages by 4,000–6,000 nautical miles and 14–20 days, as outlined in a recent report by the commerce ministry.
Despite these challenges, India’s textile and apparel market remains poised for significant growth. The Indian Brand Equity Foundation (IBEF) forecasts a substantial rise, projecting the market to reach US $387.3 billion by 2028, with a compound annual growth rate (CAGR) of 14.59% from US $172.3 billion in 2022.
Source: Apparel Resources
