Did you know about India’s record-breaking Textiles and Apparel (T&A) along with Handicrafts exports, reaching an all-time high of $44.4 billion in FY 2021-22? This remarkable surge marked a substantial increase of 41% compared to FY 2020-21 and 26% from FY 2019-20. These figures underscore India’s vibrant textile industry, serving both domestic and global markets. If you’re part of a business that has established a stronghold in India’s domestic textile market and now aims to expand globally, it’s time to explore shipping your products worldwide. This blog post will guide you through the essentials of taking your textile export business from India to various marketplaces, including procedures, necessary documents, export incentives, and more. So, without any further ado, let’s get started.
A Brief Overview of Textile Export Industry
The Indian textile industry stands as a cornerstone of the nation’s economy, holding immense significance. It contributes substantially, accounting for about 20% of industrial production, 9% of excise collections, and offering employment to approximately 18% of the industrial workforce. Impressively, it generates nearly 20% of India’s total export earnings and contributes 4% to the country’s GDP. With approximately 35 million workers, it stands as the second-largest exporter in the nation.
India leads globally as the largest producer of cotton and jute, alongside significant production in silk, wool, and man-made fibers. Its product range spans yarn, fabric, garments, and home textiles, showcasing a high level of diversity.
However, the industry faces several challenges, including escalating labor costs, intensified competition from other nations, and stricter environmental regulations. Despite these hurdles, the industry holds promise for growth owing to its robust domestic market, skilled workforce, and access to abundant raw materials. This positioning sets the stage for further advancement and resilience in the global textile landscape.
Top Destinations for Indian Textile Exports
- The USA
In 2022, trade between India and the USA surged by 40%, with textile exports accounting for about 27% of the total.
- European Union (EU)
Approximately 18% of India’s apparel exports headed to the European Union (EU), making it a significant market for Indian apparel trade.
- Bangladesh
Around 12% of India’s textile and apparel exports found their way to Bangladesh in 2022.
- UAE
The UAE ranked fourth, importing roughly 6% of India’s textile exports in 2022.
Export Procedures for Indian Textiles
For exporting textiles from India, several steps need to be followed. Here are as follows:-
# Step 1: Obtain Export License
From the Directorate General of Foreign Trade (DGFT), obtain an export license.
#Step 2: Secure Export Finance
After obtaining the license, approach a bank for financial support.
#Step 3: Ensure Quality Standards
Once the export finance is secured, verify that your goods meet the destination country’s quality standards.
#Step 4: Obtain Relevant Certificates
Depending on requirements, acquire necessary certificates or permits.
#Step 5: Engage Freight Forwarder
Find a reliable freight forwarder, which is essential for shipment assistance.
#Step 6: Track and Ensure Safe Delivery
Monitor shipment progress and ensure safe delivery.
What is the Documentation required for Carrying Your Textile Export Business
Essential documents typically required for textile exports from India include:
- Export License (DGFT)
- Packing list
- Invoice
- Bill of lading or airway bill
- Certificate of origin
- Certificate of conformity (if needed)
- Export declaration form
- Shipping order
- Debit note or credit note (if applicable)
- Export Incentives for Textiles:
What are the Export Incentives for Textiles and Clothing?
The Indian government offers several export incentives:
- Duty drawback: Refund of central excise duties and service tax paid on exported textiles.
- Cumulative Duty Credit Entitlement (CDCE) scheme: Duty-free import entitlement for inputs used in textile manufacturing.
- Export Promotion Capital Goods (EPCG) scheme: Encourages duty-free import of capital goods for the export sector.
- Special Economic Zone (SEZ) units/developers: Benefits include duty-free import of inputs and fiscal incentives to promote exports.
What are the Top Export Textiles from India?
Let’s delve into the breakdown of key textile exports from India:-
- Cotton Textiles
In 2022, cotton textiles emerged as a frontrunner, clocking in at $17.2 billion in exports. This category claimed a substantial 39% share of India’s total textile exports, marking a robust 54% growth from FY 2020-21 to 2021-22. The demand for cotton-based apparels from India has been on a steady rise, reflecting a significant contribution to the country’s textile export market.
- Ready-Made Garments
Ready-made garments followed closely, boasting exports worth $16 billion in 2022, securing a sizable 36% share of India’s textile exports. This segment witnessed a commendable 31% growth during 2021-22 from the previous fiscal year. The appeal of India’s ready-to-wear clothing continues to captivate international markets, contributing substantially to its export portfolio.
- Man-Made Textiles
Man-made textiles marked their presence with exports amounting to $6.3 billion in 2022, capturing a 14% share of India’s total textile exports. Notably, this segment experienced an impressive 51% growth during 2021-22 from the preceding fiscal year. India’s prowess in producing synthetic textiles has garnered attention, showcasing a robust expansion in global demand.
- Handicrafts
The realm of handicrafts added its unique essence, recording exports of $2.1 billion in 2022 and contributing a 5% share to India’s total textile exports. This segment witnessed a commendable growth of 22% during 2021-22 from the prior fiscal year. India’s rich heritage and craftsmanship in handmade products continue to resonate globally, reflecting an upward trajectory in demand.
Top Destinations for Indian Textile Exports
- The USA
India’s trade with the USA soared in 2022, experiencing a remarkable 40% surge in exports. Among these, textile exports constituted a noteworthy 27% of the total export volume, highlighting the USA as a pivotal market for Indian textiles.
- European Union (EU)
The European Union accounted for 18% of India’s apparel exports, indicating a substantial chunk of India’s apparel trade directed towards EU markets.
- Bangladesh
A notable 12% of India’s total textile and apparel exports found their way to Bangladesh in 2022, showcasing the importance of this neighboring nation in India’s export market.
- UAE
Ranked fourth among the destinations for India’s textile exports, the UAE imported approximately 6% of the total apparel exports in 2022, signifying its significance in India’s export landscape.
Summary
The Indian textile export industry is crucial to take strategic steps to maximize its export potential. Emphasizing high-value-added products, investing in research and development, exploring new markets, enhancing infrastructure, and robustly promoting Indian textiles are key avenues for growth. For tailored guidance on Textile exports, consider leveraging the Amazon Global selling platform. Reach out today to unlock a world of export-import possibilities.
Also Read: How Textile Industry is staining the Nature’s Fabric?
