Export orders rise 10% in six months on demand from US, EU
demand in the European Union, West Asia and the US has boosted export order books by at least 10% from six months before, companies said, signalling a possible recovery from last year. Leather goods, footwear, and apparel are driving demand but engineering goods shipments for new projects are facing a challenge due to geopolitical tensions, exporters said.
«Overall, compared to the last six months, the order position has improved 15-20% for leather footwear especially from the US and partially Europe,» said Rafeeq Ahmed, chairman, Farida Group, one of India's largest shoe manufacturers and exporters. «The demand for non-leather footwear is also coming up.»
India's total goods exports in FY24 fell 3.1% to $437 billion from $451 billion in the previous fiscal. Apparel exporters cited an increase of over 10% in orders starting February, mostly from the UK, US and the EU. «The decline in demand has slowed and there are obvious signs of improvement. Industry has an ambitious target of $20 billion apparel exports in FY25,» said Mithileshwar Thakur, secretary general, Apparel Export Promotion Council.
He said India's free trade pacts with Australia and Mauritius have also had a positive impact.
India exported apparel worth $14.5 billion in FY24. Ahmed said the inventory decline in India's key markets is driving demand. A Gujarat-based apparel exporter who did not want to be identified said there has been a 20% increase in new inquiries, clientele and conversion of inquiries to orders since February.
«While logistics
