homeeconomy NewsTextile exports see annual decline, government blames global demand, geopolitical factors

Textile exports see annual decline, government blames global demand, geopolitical factors

Sources added that the export of readymade garments fell to $13.05 billion between April 2023 and February 2024, compared to $14.73 billion during the same period last year.

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By Abhimanyu Sharma  Mar 27, 2024 10:36:29 AM IST (Published)

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Textile exports see annual decline, government blames global demand, geopolitical factors
Government sources have indicated that the 11-month trade data between April 2023 and February 2024 showed an annual fall in exports of textiles. Terming exports as a function of demand and supply and dependent on several variables, sources attributed the fall in exports to slack international demand and geopolitical challenges like the Red Sea conflict.

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Other variables were described as order flow, inventory and availability of shipping containers and ships.
Sources added that the export of readymade garments fell to $13.05 billion between April 2023 and February 2024, compared to $14.73 billion during the same period last year. During the same period, the value of yarn shipments declined to $4.23 billion from $4.47 billion while the value of jute exports fell from $400 million to $310 million. However, sources pointed out that initial estimates for February 2024 have shown over 12% growth in textiles exports compared to February 2023.
In January 2024, government sources informed that the cost of shipments had risen by around 20% and the turnaround time had increased by around two weeks due to curbed services by two private shipping lines due to the Red Sea crisis.
An inter-ministerial panel held several meetings to discuss strategies to deal with the impact of the ongoing conflict. While the Department of Financial Services (DFS) was asked to maintain credit flow for exporters, the Ministry of Shipping had been told to monitor volumes of trade.

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