India's readymade garment exports could cross $30 billion in 2027: CareEdge

By

Isabelle Crossley

Published
Nov 23, 2022

India’s readymade garment exports could cross the $30 billion mark by the year 2027, according to a new report by ratings agency CareEdge. The country’s availability of raw materials and large workforce should enable the industry to grow to reach a 4.6% to 4.9% share of the global readymade garment export market, up from its current figure of 3%. 

“India has a very good presence across the cotton textile value chain from fibre to fabric, while it has a limited presence in man-made fibre, which is expected to get a boost by expected FTA with the UK and [the] production-linked incentive scheme,” wrote CareEdge’s associate director of corporate ratings Krunal Modi in the report, Asian News International reported. “Furthermore, having presence across [the] entire value-chain reduces transportation costs and lead time, thereby providing a cost-effective solution to the customers.”
 
Indian readymade garment exports have remained stagnant at an annual total of approximately between $15 billion to $17 billion for the past five years up to 2021. However, the recent free trade agreement with the UAE and recently ratified agreement with Australia are expected to give the industry a boost, along with the upcoming India-UK trade deal, ET Bureau reported. 

India competes globally with the main manmade garment manufacturing nations including Pakistan, Vietnam, and Bangladesh. In the European Union and UK, India is at a disadvantage as these nations enjoy more favourable trade tariffs, which the Union Government is attempting to remedy through new trade deals. The young age of India’s population compared to many nations is also a positive for its workforce and contributes to the country’s competitiveness in the market.