Gujarat textile sector sees 8 per cent export slump

Gujarat textile sector sees 8 per cent export slump: Due to enduring geopolitical crises like the Israel-Palestine conflict and the war between Russia and Ukraine, Gujarat’s once-vibrant textile industry has had a dismal performance in 2023. Government-compiled data shows an 8 per cent decline in exports from US $ 5.10 billion in 2022 to US $ 4.69 billion this year.

Gujarat Textile Sector sees 8 per cent Export Slump

The industry not only missed out on the opportunity to turn things around during the recently ended wedding and celebration seasons, but the ongoing geopolitical unpredictability might also delay the much-needed industry recovery for at least another quarter.

Saurin Parikh, Chairman, Textile Task Force Committee, Gujarat Chamber of Commerce and Industry (GCCI), said, “Due to the ongoing geo-political crisis in the international markets, the textile industry is still struggling to crawl out of the demand crunch. Though there has been demand from the domestic markets but the ongoing lack of demand from major international markets like the US and European Union are making the conditions unfavourable on the whole.”

Ashwin Thakkar, Vice President, Textile Association of India, said, “The uptick in the domestic retail demand has some signs of recovery but it has been restricted by the changes in spending patterns of the consumers.”

Gujarat’s overall textile exports increased by 11.5 per cent, however the majority of this gain was attributable to the export of cotton yarn. In comparison to FY23, the state’s total cotton yarn exports increased by 28.5 per cent to US $ 2.23 billion from US $ 1.73 billion. In contrast to cotton yarn, exports of manufactured fibre and ready-made clothing decreased by 7 per cent and 8 per cent, respectively, opined Devroop Dhar, Co-founder, Primus Partners, a business and management consulting firm.