Indian exporters: Set to ramp up production capacity
03 September 2022, Mumbai:
Indian exporters are ramping up their production capacity. This includes getting into the manmade fiber segment, lowering their cost of production, and working on meeting global standards.
According to one PIB report published earlier," Merchandise exports from India have reached USD 417.8 billion in the current financial year. This figure excludes the figures from non-EDI Ports and adds that it is likely to exceed $418 billion, an all-time high in India’s export history.
India achieved the highest monthly value of merchandise export in March 2022 amounting to USD 40.38 billion, an increase of 14.53% over USD 35.26 billion in March 2021 and an increase of 87.89% over USD 21.49 billion in March 2020.
The exports have witnessed significant growth in non-petroleum goods also in April 2021-March 2022 which was USD 352.76 billion, an increase of 32.62% over USD 266.00 billion in April 2020-March 2021, and an increase of 29.66% over USD 272.07 billion in April 2019-March 2020.
Apart from a diversified range of merchandise goods exported during 2021-22, India’s merchandise exports have also seen a significant increase in different countries, especially, developed countries. Exports to USA, UAE, Bangladesh, Netherlands, Singapore, Hong Kong, UK, Belgium and Germany grew by 46.4%, 66.9%, 64.5%, 90.5%, 26.8%, 7.8%, 28%, 90.4% and 21.1% respectively over April 2020- March 2021".
At one of the forums Hon'ble Textile Minister, Piyush Goyal said, " Notwithstanding the challenges posed by successive waves of Covid (2nd and 3rd wave), India’s merchandise trade performance has shown impressive growth and exports remained above USD 30 billion for twelve consecutive months from April 2021 to March 2022".
As per one fashionatingworld.com report," Indian apparel exports rose by about 32 percent from April to June this fiscal as against the same period last year. Free trade agreements with countries including the UAE, Australia, and the UK are expected to help neutralize the advantage which India’s competitors used to enjoy in some of the important markets. Now the apparel sector is awaiting the new Technology Upgradation Fund Scheme and the production-linked incentive scheme.
As per Niti Aayog's EXPORT PREPAREDNESS INDEX 2021 report," Despite the global factors, it is also heartening to see the success of our Hon’ble Prime Ministers’ economic Vision, AtmaNirbhar Bharat. The increase in domestic manufacturing capacity and competitiveness is helping India’s exports grow at a record pace. Case in point is Apparel & clothing (knitted or crocheted) - are some of the sectors with significant export growth rates this year".
Efforts are being made toward promoting the brand India on various global platforms as a trusted supplier by showcasing its strength in sustainability, circularity, and ethical sourcing. The demand for Indian textiles in the domestic and overseas markets is high. Especially after the pandemic, one sector under textiles that has really got a boost has been home textiles.
The seven mega textile parks that have been launched are aimed at reducing the high logistics costs as well as the fragmented value chain which obtains now. Most of India’s major exporting destinations like the US and EU are going for a China plus one strategy, which will prove to be beneficial for India.
As per one of the recently published articles,” Naren Goenka, Chairman, Apparel Export Promotion Council (AEPC), has appealed to the garment industry to grab the emerging global opportunity by revamping production capacity, reducing cost, focusing upon MMF, and embracing best sustainable practices”.
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