- 18 Apr 2022
- ICICIdirect Research
READYMADE GARMENT EXPORTS CONTINUE TO SCALE NEW HIGHS IN MARCH 2022
News: Textile exports continued their healthy growth momentum across categories and exited FY22 with strong numbers. Key positive being RMG (ready-made garment) exports surpassing Rs 13000+ crore mark for the first time in March 2022. Exports for RMG garment in March grew 28% YoY to Rs 13269 crore (up 11% MoM, 2-year CAGR: 26%). Exports for cotton yarn and home textile reverted to back to Rs Rs 10000 crore levels (up 28% YoY, 8% MoM) after declining in month of Feb (Rs 9453 crore). Overall India’s textile & apparel exports have surpassed USD 40 billion mark for the first time (USD 41.3 billion) in FY22 (USD 34 billion in FY20)
Views: In the last four months, RMG segment has staged a robust recovery with consistent sequential growth of 38.3%, 4.1%, 4.2%, 11% in December, January, February and March, respectively. Subsequently, for FY22, export for RMG has surpassed pre-Covid levels with growth of ~9% (vs. FY20) to Rs 119434 crore (US$16.0 billion) with trajectory accelerating significantly 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 healthy with two-year CAGR of 26% in FY22 to Rs 113876 crore (US$15.3 billion)
Impact: Positive