Indian Textile Industry Poised For Growth Amid Rising Export Demand
The Indian textile industry is poised for growth in 2024, driven by rising export demand, resilient consumer spending, and favorable geopolitical conditions, according to a B&K Securities report.
The ready-made garments (RMG) sector is expected to see significant export growth due to restocking by Western retailers, increased demand for spring-summer collections, and stable cotton prices. While domestic demand remains moderate due to lower discretionary spending and overstocking, the market could improve in the second half of FY25 with the wedding and festive seasons.
The crisis in Bangladesh may temporarily benefit Indian exporters, although long-term gains are expected as global buyers shift away from China and Bangladesh. The home textiles segment will continue growing, supported by strong U.S. consumer spending and the China+1 strategy by retailers. Free Trade Agreement negotiations with the UK and the EU could further boost India’s market share and margins.
Challenges include logistical disruptions from the Red Sea crisis and uncompetitive domestic cotton prices. Additionally, Indian companies will need to adapt to sustainability trends to stay competitive in Western markets.
