Indian Apparel Exports Set to Surge in FY25: ICRA

Indian apparel exporters are set for a revenue growth of 9-11% in FY25, helped by inventory liquidation, shifting global sourcing, and government incentives. Despite a slow FY24 due to high inventory and competition, long-term prospects are strong with new capex spending and evolving consumer trends.

Indian apparel exporters are forecast to achieve a 9-11% revenue growth in FY25, primarily driven by retail inventory liquidation and a shift in global sourcing to India, as reported by ICRA.

Despite sluggish performance in FY24 due to high inventory levels and increased competition, the sector's prospects remain promising with favorable consumer trends and government incentives, including the PLI scheme and proposed trade agreements with the UK and EU.

Challenges such as demand uncertainty in key markets, rising labor and freight costs may impact operating margins. However, India's expanded capacity and competitive labor costs should bolster its global apparel trade standing amidst geopolitical shifts.