— This is the script of CNBC's news report for China's CCTV on May 24, 2021, Monday.
Data from India's Cotton Textile Export Promotion Council show textile and apparel exports between April 2020 and March 2021 were down 12.99% to $29.45 billion from $33.85 billion a year earlier. Within that, apparel exports dropped 20% and textile exports declined 6.43%.
The textile sector is one of India's oldest industries and a pillar of the economy. According to India Brand Equity Foundation, in the 2018-19 period, India's textile industry contributed 7% to the industry output. The Indian textiles and apparel industry contributed 2% to the GDP, 12% to export earnings, and accounted for 5% of global trade in textiles and apparel. These figures show the importance of the textiles sector to India.
Meanwhile, India is also the second-largest exporter of textiles just behind China. A WTO report pointed out that the global trade of textiles declined in 2019 due to trade tensions among several major economies. Last year, global trade was hit by the pandemic, and textiles were also adversely impacted. Now, India's COVID crisis is bringing new challenges to the global supply chain of textiles.
Globally, the textile sector is a major employer with the majority of the positions held by women. During the pandemic, the sector saw major layoffs in a number of countries. Over 45 million people work in India's textiles and apparel industry. Including many women and people from rural areas. The pandemic's hit on the textile industry could cause high unemployment and other social issues. Now, the global economy is gradually recovering.
Thanks to the recovery of the fashion industry and the growth of eCommerce platforms, the textile industry could grow again post the pandemic. Global textiles market size was estimated to be at about $1 trillion in 2020, and it is projected to grow at a CAGR of 4.4% between 2021 to 2028. The scale of the global textile machinery market fell by 30% in 2020, but with the help of digitalization, it could also enjoy a 9.1% CAGR growth till 2027.