The readymade garment industry in India has historically been one of the most important segments of the textile industry in India. The readymade apparel market is one of the largest contributors to India’s economy, providing millions with employment while making significant contributions to India’s annual GDP and export earnings. Today, India is the world’s 6th largest exporter of readymade garment products, registering over $17 bn in readymade garment export value annually. Combining global demand that is at an all-time high, with much stronger support and preferential policies from the government, India’s readymade garment (RMG) industry is set to achieve rapid growth in the future.
According to latest data, India’s apparel IIP in February 2019 was 171, which was 4 per cent higher than January 2019. The IIP index has continuously grown from a value of 136 in October 2018, indicating growth in apparel manufacturing in the country. The apparel CPI in March 2019 was 148, which is same for last 5 months, indicating that the prices have remained stagnant. The apparel exports (excluding exports to UAE) posted a miniscule growth of 1 per cent in FY 2019 (Apr-Feb) as compared to FY 2018 (Apr-Feb). The apparel exports have declined to majority of the countries among the top 10 markets. However, the exports to the largest market, USA registered 7 per cent growth. The apparel imports in FY 2019 (Apr-Feb) stood at $1,019 mn, which is 47 per cent higher than that in FY 2018 (Apr-Feb). Imports from Bangladesh, the largest apparel exporter to India has increased by 96 per cent in FY 2019 (Apr-Feb) as compared to FY 2018 (Apr-Feb).
The analysis of financial fillings for Q3 FY 2019 shows that there is a growth in operating revenue as well as operating profit margins for all the considered fashion brands & retailers. Shoppers Stop has shown a phenomenal growth in Q3 FY 2019 with an operating profit margin of 9.7 per cent as compared to 3.7 per cent in FY 2018. In apparel manufacturing, Page Industries, Kitex Garments and SP Apparels have registered operating profit margins higher than 20 per cent.
Apparel Index of Industrial Production (IIP) Update
The apparel IIP showed an increase in Feb. 2019 after remaining constant for the last two consecutive months. With a value of 171, the apparel IIP was 4 per cent higher than Jan. 2019.The index indicates continuous growth in apparel manufacturing since October 2018.
Apparel Consumer Price Index (CPI) Update
The apparel CPI in Mar. 2019 was 148, which is same for last 5 months. As compared to Mar. 2018 the apparel CPI increased by 3 per cent.
The apparel exports in Feb. 2019 stood at $1,546 mn, which showed a miniscule increase of 1 per cent from Jan.2019. Apparel exports have been showing a positive growth on YoY basis since October 2018.However, the overall export sin FY 2019 (Apr-Feb) are5 per cent lower than that in FY 2018 (Apr-Feb). Based on quick estimate data for March 2019, the apparel exports in FY 2019 were 3.4 per cent lower than FY 2018.
Excluding UAE, the apparel exports have posted a miniscule growth of 1 per cent in FY 2019 (Apr-Feb) as compared to FY 2018 (Apr-Feb).The apparel exports have declined to majority of the countries among the top 10 markets. However, the exports to largest market, USA registered 7 per cent growth. Exports to UAE witnessed a significant decline worth $ 879 mn (33 per cent lower) in FY 2019 (Apr-Feb) as compared to FY 2018 (Apr-Feb).
The apparel imports in FY 2019 (Apr-Feb) stood at $1,019 mn which is 47 per cent higher than that in FY 2018 (Apr-Feb).The apparel imports have decreased by 15 per cent in Feb. 2019 as compared to the previous month.
Imports from Bangladesh, the largest apparel exporter to India, has increased by 9.6 per cent in FY 2019 (Apr-Feb) as compared to FY 2018 (Apr-Feb).Sri Lanka and Hong Kong have also shown a significant rise in the apparel imports of 120 per cent and 171 per cent respectively.
The readymade garment industry in India has historically been one of the most important segments of the textile industry in India. The readymade apparel market is one of the largest contributors to India’s economy, providing millions with employment while making significant contributions to India’s annual GDP and export earnings. Today, India is the world’s 6th largest exporter of readymade garment products, registering over $17 bn in readymade garment export value annually. Combining global demand that is at an all-time high, with much stronger support and preferential policies from the government, India’s readymade garment (RMG) industry is set to achieve rapid growth in the future.
