CITI Highlights Resilience of India's Textile & Apparel Sector Amid Record Trade Deficit Challenges

17th December 2024, New Delhi: According to estimates released by the Department of Commerce, India's merchandise trade deficit widened to a record high of US$ 37.84 billion in November 2024. The surge reflects the twin challenges of a global economic slowdown and rising imports. Amidst these headwinds, India's Textile and Apparel (T&A) sector demonstrated remarkable resilience, registering an export growth of 5.81% compared to last year.

Shri Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI), commended the sector's consistent performance despite challenging global dynamics. He said, "The T&A sector has shown encouraging progress this year, particularly with strong export growth recorded in October 2024. However, November brought challenges due to ongoing geopolitical and economic uncertainties impacting global trade flows. The rising imports of textile products and apparel also call for a renewed focus on India's cost competitiveness."

While acknowledging these hurdles, Shri Mehra was optimistic about the sector's prospects in the coming months. He underscored the importance of government support in strengthening India's competitive edge, particularly as global competition intensifies.

"The upcoming expiry of the RoDTEP scheme for AA/SEZ and EoU units on 31st December 2024 is a matter of concern. A timely extension of this scheme, in alignment with DTA units, would help address cost challenges and sustain export growth momentum," he stated.

CITI remains confident in the government's proactive approach and anticipates an extension of the RoDTEP scheme to support AA/SEZ and EoU units. With continued policy backing, Indian T&A products can maintain their competitive edge in global markets and foster sustained sectoral growth.