In FY25 Engineering, Textile, and Apparel Exports Witness Over 6% Growth

India’s exports in the engineering, textile, and apparel sectors have shown a strong performance in the financial year 2024–2025. According to data released by the Commerce Ministry, each of these sectors recorded over 6% growth compared to the previous fiscal year. This growth comes amid evolving global trade patterns and shifting geopolitical relationships, especially between the U.S. and China, which have opened up new opportunities and posed new challenges for Indian exporters.

Key Highlights

Engineering Goods Exports

• Registered a 6.74% year-on-year growth in FY25.
• Export value rose from $109.3 billion (FY24) to $116.67 billion (FY25).

Concerns

• Additional U.S. tariffs on iron, steel, and auto components may impact future growth.
• Possible $4–5 billion annual loss in shipments to the U.S.
• Increased competition from China in alternative markets as it redirects exports due to trade tensions with the U.S.

Textile and Apparel Exports

• Grew 6.32% in FY25 compared to FY24.
• Apparel exports were the key driver, rising by 10.03%.
• The industry sees a strategic opening as the U.S. looks to diversify sourcing away from China.

Market Impact and Challenges

• March 2024: Indian engineering goods exports dipped 4% YoY to $10.82 billion, down from $11.27 billion in March 2023, due to global trade instability.
• Global trade war impacts are already visible, with rising trade barriers and shifting supply chains.
• Exporters urge for policy support and diversification to withstand global competition.

Opportunities

• U.S.–China trade war opens space for India to become a trusted alternative supplier.
• With effective trade diplomacy and incentives, India can expand its footprint in global markets.