India’s apparel export sector is showing promising signs of recovery, with exports rising by 11.3% year-on-year in May, according to the latest data released by the Confederation of Indian Textile Industry (CITI).
This marks a significant uptrend and a positive development for the industry, which has been struggling to regain its footing in the aftermath of the Covid-19 pandemic. The export boost is largely attributed to a shift in global sourcing strategies.
Western buyers are increasingly viewing India as a dependable alternative for apparel sourcing, especially in light of ongoing geopolitical and supply chain challenges associated with traditional hubs like China and Bangladesh. Factors such as compliance standards, geopolitical stability, and India’s growing manufacturing capabilities are enhancing its appeal to international retailers and brands.
The upsurge in exports offers a much-needed respite for India’s apparel sector, which has endured a challenging period marked by declining demand and disrupted supply chains. The sector had faced two consecutive years of stagnation or negative growth following the pandemic, as consumers globally pulled back on discretionary spending, particularly on clothing.
Industry experts believe that this momentum could continue in the coming quarters, especially with the festive and holiday seasons approaching in global markets. Moreover, the government’s focus on enhancing textile infrastructure, incentivizing production through the PLI (Production Linked Incentive) scheme, and improving ease of doing business is expected to support long-term growth.
However, stakeholders caution that sustained export growth will require continued investment in innovation, product development, sustainability practices, and competitive pricing to match global expectations. With this renewed interest from global buyers, Indian apparel manufacturers are optimistic about scaling operations, creating employment, and expanding their footprint in key international markets.