India's Textile Industry Set for Growth in 2024 with Strong Export Demand and New Opportunities

India's textile industry is set for growth in 2024, mainly due to stronger export demand, stable consumer spending, and favorable global conditions, according to a B&K Securities report.

The ready-made garments (RMG) sector is expected to see a major boost in export demand next year. Although domestic demand may be moderate due to excess inventory and limited spending, exports will likely benefit from restocking by Western retailers and higher demand for spring-summer collections. The US is also expected to cut interest rates, which will drive more purchases, while steady cotton prices keep Indian exports competitive.

India’s RMG sector will temporarily benefit from Bangladesh’s ongoing crisis, though differences in product offerings and Bangladesh's trade deals with the EU may limit the advantage.

In the long run, India stands to gain as global buyers move away from relying heavily on China and Bangladesh, especially as Bangladesh loses its Least Developed Country (LDC) status by 2029.

The home textiles segment will also continue growing, with strong demand in the US, which accounts for about 60% of India’s home textile exports. Indian players are gaining market share in the US, helped by the China+1 strategy, where retailers look for alternatives to China.

Free Trade Agreements (FTAs) with the UK and EU could further boost India's textile exports, increasing profits and market share. However, challenges like logistical issues from the Red Sea crisis and the need for sustainable practices in Western markets remain.

05/09/2024 07:47am