- 16 Feb 2022
- ICICIdirect Research
Textile exports sustain growth momentum in January
News: Textile exports continued their healthy growth momentum across categories in January 2022. Key positive was RMG continuing its monthly export run-rate of Rs.11000+ crore for the second consecutive quarter. Exports for RMG garment grew 21% YoY to Rs.11511 crore (up 4% QoQ, two-year CAGR: 6%). Exports for cotton yarn and home textile dipped marginally on a QoQ basis (down 5%) to Rs.10330.9 crore but continues to be significantly ahead of pre-Covid levels (two year CAGR: 26.2%).
Views: For April-January 2022, export for RMG surpassed pre-Covid levels with growth of ~4% to Rs.94163 crore, with trajectory accelerating in second half of FY22. Indian RMG exporters are well placed to capitalise on the opportunities from shift in demand from China to other low cost Asian countries. Driven by significantly higher yarn prices and volume demand owing to US’s sanctions on China’s Xinjiang cotton, export market for cotton yarn and home textile continued to be robust with two-year CAGR of 25% in April-January 2022 to Rs.94183 crore. Overall India’s textile apparel exports for April-January 2022 was at ~ US$34 billion (vs. US$34 billion in FY20). The centre had set a target of US$44 billion in FY22 of which 76% has already been achieved.