ICRA Threads Optimism into FY25: Indian Garment Industry Set to Stitch Up Growth

ICRA anticipates India's apparel industry to expand at a 12-14% revenue growth in FY25, supported by increased export volume and realizations. The sector is supported by the China Plus One model as well as importer-level inventory destocking. Apparel exports during the initial ten months of FY25 increased by 11.6% YoY, with exports to the US increasing by 13.8% and to the EU (including the UK) by 11%. Additionally, the depreciation of the Indian rupee enhanced export values by 160 basis points in INR terms.

 

Despite these enhancements, operating margins will decline by 50-75 basis points due to higher labor costs and inflationary pressures. ICRA also highlights heavy capital expenditure in FY24 and anticipates steady investments in FY25 to cement India's position in global trade as Bangladesh emerges from its LDC status.

Source: Global Textile Times, Fashion Network, Apparel Resources