India’s readymade garment (RMG) exports have registered a growth of 16.4 percent during the month of April of the current financial year 2022-23. In financial year 2021-22, India achieved a growth of 30.4 percent in garment exports. Industry experts said that garment exports rose in terms of value, but the volume of exports might have declined.
Experts argued that costlier raw material, including cotton, has pushed up garment prices which caused export value figures to soar.
According to the latest data from the government, India’s garment exports were $1510.8 mn in April 2022, which is 16.4 percent more than the exports of April 2021 when India reported garment exports of $1297.7 mn. The garment exports have surpassed the pre-COVID levels in April 2022. In April 2020, exports had fallen to $126.8 mn. Prior to that, garment exports in April 2019 stood at $1408.8 mn.
According to government data, garment exports not only increased by 30.4 percent on annual basis, but also exceeded the pre-pandemic level in financial year 2021-22. Garment exports from India stood at $160.18 bn in the financial year 2021-22, while in financial year 2020-21, exports stood at $122.85 bn.
The financial year 2020-21 began with lockdowns, which affected the country’s economic activities and normal life in the first quarter. Prior to the pandemic, garment exports were $155.09 bn in FY 1019-20. The exports had fallen by 20.8 percent in the FY 2020-21 due to the pandemic.
The industry is not excited by the growth in garment exports. The exports have registered impressive growth in value terms because of costlier cotton. But there has been no increase in the exports in volume terms.
Sanjay Jain, Managing Director, Hosiery Garment Company TT Ltd told, “Value of garment exports has clearly increased but actual exports declined in volume.” The value of garment exports has registered growth because the price of garment increased due to the increase in the prices of raw materials including cotton.
