New Delhi, Jun 29 (KNN) India's textile exports have shown significant growth in the first two months of fiscal year 2025, according to recent data from the commerce ministry.

The sector recorded exports worth USD 5.86 billion in April-May 2024, marking a 5.4 per cent increase from the USD 5.56 billion reported in the same period last year.

Cotton yarn, fabrics, and handloom products exports rose by 8.24 per cent to USD 1.95 billion, while readymade garment exports increased by 4.47 per cent to USD 2.55 billion.

Handcrafts and handmade carpets saw an 11.49 per cent growth, reaching USD 273.66 million, with carpet exports alone growing by 11.76 per cent to USD 241.81 million.

The growth is attributed to several factors, including post-pandemic recovery in consumer spending, increased demand for summer clothing in Western markets, and a growing preference for sustainable and ethically produced Indian garments.

European markets have shown particular interest, with Germany, Sweden, and Spain reporting increased imports of Indian textiles.

Germany's imports rose by 6.32 per cent to USD 223.65 million, Sweden's by 15.13 per cent to USD 40.57 million, and Spain's by 4.41 per cent to USD 188.52 million.

The Indian government is considering expanding its Production Linked Incentive (PLI) scheme for the textile sector to include more products such as t-shirts and innerwear.

This move comes as part of efforts to boost the sector, which saw an 11.69% decline in exports between 2018 and 2023.

The textiles ministry aims to attract investments of ₹95,000 crore and create approximately 2.25 million new jobs in the coming years.

Additionally, there's a focus on increasing India's presence in the technical textiles market, with a target to raise exports from the current USD 2.5 billion to USD 10 billion in five years.

Ajay Sahai, Director General, Federation of Indian Export Organisations, expressed optimism about the sector's prospects, citing recent free-trade agreements and potential opportunities arising from global trade dynamics.

However, he cautioned about potential challenges related to logistics and increasing freight rates.

While the current growth trend is encouraging, the textile industry faces potential hurdles in logistics and shipping that could impact future performance.

Nevertheless, with government support and strategic initiatives, the sector appears poised for continued expansion in the global market.

(KNN Bureau)