India’s textile and apparel exports to the United States were up 55% in the first seven months of 2021. This is the sixth consecutive month of growth for India’s textile and apparel exports to the US market.
India’s exports to the US surged 55% during January-July 2021, higher than Vietnam’s 18%, Bangladesh’s 29%, China’s 28% and Mexico’s 31%.
A recovery in consumer spending in the US and European markets, a noticeable shift away from China, a strong demand for home textiles, where India has an edge over its competitors – these are some of the reasons for the strong export performance.
Duty remission schemes such as RoDTEP (Remission of Duties and Taxes on Exported Products) and RoSCTL (Rebate of State and Central Taxes and Levies) have helped free the financial headroom available for exporters, even as exporters themselves have flagged concerns over delayed operationalisation of tax rebate schemes and lower-than-expected benefits. Challenges on the availability of containers and high shipping costs are a cause for concern in the near term.
There is also a possibility of global central banks putting a stop to their quantitative easing policy that could, in effect, progressively temper consumer demand in these markets.