India’s overall textile and garment exports witnessed 20 percent in May, of which export of textile products grew at a much slower pace than that of garments. While apparel shipments gained 24.9% in May, textile exports grew by just 8.6% due to apparel segment’s outstanding performance at shows following a spur demand in the US market as well as a weak rupee.

The overall textile and garment exports, including fibre shipments, hit $3.06 billion in May, compared with $2.55 billion a year earlier. Consequently, the exports in the first two months of FY15 climbed 18% to $5.99 billion against $5.07 billion a year earlier. Garments made up for 47% of such exports.

According to DK Nair, secretary-general, Confederation of the Indian Textile Industry (CITI), textile exports have been affected by slower purchases by China, as it accounts for 40% of Indian cotton yarn exports. However, the festive season demand will boost domestic consumption of textile items and a weak rupee would help exports. He further adding that if China improves its appetite in the coming months it would further brighten export prospects. The rupee has depreciated 3.4% against the dollar since June this year.

In FY14, the rupee depreciation and steady orders from the US drove up overall textile and clothing exports to $39 billion, compared with $34 billion a year earlier. However, the exports were still lower than the target of $43 billion for 2013-14 as demand recovery in the European market was slow due to a financial crisis. Textile exports are dependent on Chinese demand while the growth in garment exports spins around the US and the EU markets.