India is the sixth largest exporter of textiles and apparel products in the world with a massive raw material and manufacturing base. During 2022-23, the share of textile and apparel in India’s total exports was 8.0% while India’s share of the global trade in textiles and apparel stood at 5%.

The Narendra Modi government is targeting US$ 250 billion in textiles production and exports of US$ 100 billion by 2030.

India’s textile and apparel products, including handlooms and handicrafts, are exported to more than 100 countries across the globe. India’s key export destinations for textiles and apparel products include countries namely the USA, Bangladesh, UK, UAE, Germany, and among others. The USA is the largest importer among all, importing about one-fourth of the total exports from India.

Apparel Export Promotion Council (AEPC)

The APEC was formed in 1978 and is the official body of apparel exporters in India. The primary objective of the council is to promote, advance, increase and develop the export of all types of ready-made garments in India. AEPC supports the apparel industry by providing research and inputs on FTA, FTP, and bilateral agreements. It is a powerful body for the promotion and facilitation of garment manufacturing and exports. The perspective is to promote, support and facilitate the Indian apparel industry to enhance its competitive advantage and global positioning in a holistic and sustainable way that is beneficial to all stakeholders of the industry

Top 3 Product Categories of Readymade garment Exports from India are

• HSN Code 62044390: HS: of synthetic fibers: other
• HSN Code 62114290: HS: of cotton: other
• HSN Code 62114300: HS: of cotton: of Hand-made fibers

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Countries Importing from India

• UNITED STATES
• UNITED KINGDOM
• UNITED ARAB EMIRATES
• SPAIN
• NETHERLANDS
• FRANCE               
• GERMANY
• SAUDI ARABIA
• ITALY
• BANGLADESH

Top buyers Importing From India

• INDITEX S A LELYSTAD BRANCH
• BELK INTERNATIONAL INC
• STRADIVARIUS ESPANA SA
• PRIMARK LTD
• PRIMARK STORES LTD
• KIABI LOGISTICQUE
• RNA RESOURCES GROUP LIMITED
• BESTSELLE AS
• MARKS AND SPENCER PLC

Export Incentives for Textiles and Clothing

The main export incentives offered are

• Drawback on state levies: Exporters are allowed to claim a refund of all state levies paid on inputs used in the manufacture of textiles and clothing exported from India.
• Duty drawback: Exporters are allowed to claim a refund of all central excise duties and service tax paid on inputs used in the manufacture of textiles and clothing exported from India.
• Cumulative duty credit entitlement (CDCE) scheme: The CDCE scheme is designed to encourage exports of textiles and clothing by providing duty-free import entitlement for inputs used in the manufacture of these products. Under the scheme, export units are entitled to import inputs without paying customs duty up to a certain limit.
• Export promotion capital goods (EPCG) scheme: The EPCG Scheme is designed to encourage the import of capital goods for use in the export sector. Under the scheme, exporters are entitled to import capital goods without paying customs duty up to a certain limit.
• Special economic zone (SEZ) units/developers: The SEZ Scheme is designed to promote exports from India by providing a number of benefits, such as duty-free import of inputs, exemption from income tax, and other fiscal incentives.

Documents Required for Exporting Textile from India

The documents required for exporting textile and clothing from India vary depending on the type of goods being exported. However, there are some documents that are required in all cases. These include:

• Export license from the DGFT
• Packing list
• Invoice
• Billof lading or an airway bill
• Certificate of origin
• Certificate of conformity (if required)
• Export declaration form
• Shipping order
• Debit note or a credit note (if applicable)