Guide to Start Shipping Textile From India

Introduction 

Did you know that India touched its highest ever Textiles and Apparel (T&A) including Handicrafts exports worth $44.4 billion in FY 2021-2?

This number saw a big jump of 41% and 26% from FY 2020-21 and FY 2019-20, respectively. These numbers go on to show that India has a thriving textile industry that caters to both domestic and international markets. 

So, are you one of those businesses that has cracked the domestic textile market in India and is ready to take on the world? It is now time to take steps to start shipping your products to the rest of the world. In this blog post, you will learn everything you need to know about shipping textile from India, the procedures involved, documents required, export incentives, and more. 

What are the Top Textile Export Products from India?

Before exploring how to start shipping textiles internationally, the following is a breakdown of the kinds of textile exported from India.

 

	Value of Total Export from India (2022)	% share of the total textile exports from India	% growth in exports from 2020-21 to 2021-22
Cotton Textile	$17.2 billion	39%	54%
Ready-Made Garments	$16 billion	36%	31%
Man-Made Textiles	$6.3 billion	14%	51%
Handicrafts	$2.1 billion	5%	22%

 

Cotton Textiles:

Cotton apparels saw a $17.2 billion of exports in 2022, with 39% share of the total textile exports from India, registering a growth of 54% from FY 2020-21 to 2021-22.

 

Ready-Made Garments:

Ready-Made Garments saw $16 billion of exports in 2022, with 36% share of the total textile exports from India, showing a growth of 31% during 2021-22 from FY 2020-21.

 

Man-made textiles:

Man-made textiles saw a $6.3 billion of exports in 2022, with 14% share of total textile exports from India which shows a growth of 51% during 2021-22 from FY 2020-21.

 

Handicrafts:

Handicrafts saw $2.1 billion of exports in 2022, with 5% share reporting a growth of 22%  during 2021-22 from FY 2020-21.

What are the Top Countries for Textile Exports from India?

The USA:

In 2022, the trade between India and the USA experienced a significant boost, with exports witnessing a notable rise of 40%. Within this surge, textile exports accounted for approximately 27% of the total export volume.

European Union (EU):

The European Union (EU) accounted for 18% of India’s apparel exports, indicating a significant portion of India’s apparel trade being directed towards EU markets.

Bangladesh:

India exported 12% of its total textile and apparel exports to Bangladesh in 2022. 

UAE:

In 2022, UAE ranked fourth among the destinations for India’s textile exports, with approximately 6% of the total apparel exports being imported by that country. 

Procedures for Textile Export From India

Navigating the global textile market requires following specific procedures for exporting textiles from India. Learn the essential steps and documentation required to successfully ship your textile products to international destinations.

Steps to Export Textile From India

1. Exporting textile and clothing from India involves several steps that must be followed. The first step is to acquire an Export Licence from the Directorate General of Foreign Trade (DGFT). 
2. After obtaining the license, you can approach a bank for Export Finance. 
3. Once the export finance is secured, you can begin the exporting process. 
4. It is crucial to ensure that your goods comply with the quality standards specified by the destination country. 
5. You may also need to obtain relevant certificates or permits from the appropriate authorities. 
6. Finding a reliable freight forwarder is essential to assist you with shipping your goods. 
7. Tracking the shipment’s progress and ensuring safe delivery to the buyer are important tasks to be carried out.

What are the Documents Required For Exporting Textile From India?

The documentation needed for exporting textile and clothing from India may differ based on the specific products being exported. However, certain documents are generally required for all exports, including:

• Export license issued by the DGFT
• Packing list
• Invoice
• Bill of lading or airway bill
• Certificate of origin
• Certificate of conformity (if necessary)
• Export declaration form
• Shipping order
• Debit note or credit note (if applicable)

Note: The specific documentation requirements may vary depending on the destination country and any additional regulations that need to be followed.

Export Incentives for Textiles and Clothing

The Indian government offers a number of incentives to exporters of textiles and clothing. These incentives are aimed at helping the exporters compete in the global market and boost exports.

The main export incentives offered are:

Duty drawback:

Exporters can seek a refund of central excise duties and service tax paid on inputs used in the production of textiles and clothing that are exported from India.

Cumulative Duty Credit Entitlement (CDCE) scheme:

This scheme aims to promote exports by offering duty-free import entitlement for inputs used in the manufacturing of textiles and clothing. Export units are allowed to import inputs without paying customs duty up to a specified limit.

Export Promotion Capital Goods (EPCG) scheme:

The EPCG scheme encourages the import of capital goods for use in the export sector. Exporters can import capital goods without paying customs duty up to a certain limit.

Special Economic Zone (SEZ) units/developers:

The SEZ scheme provides benefits to exporters, including duty-free import of inputs, exemption from income tax, and other fiscal incentives, to promote exports from India.

Wrapping up

The Indian textile market has experienced remarkable growth in exports, making it an ideal time for textile businesses to expand globally. To export textiles from India, businesses need to follow procedures such as obtaining an export license, ensuring compliance with quality standards, and working with reliable freight forwarders. With these opportunities, businesses can seize the potential of the global market and establish a strong presence as exporters of high-quality textiles from India.

With the continuous surge in the export sales of textiles during the financial year of 2022, there is little left to doubt if you should be taking your textile business global or not. To secure your position among the top apparel exporters originating from the country, sign up with Shipyaari today. We offer a wide range of services to make your exports easier, faster, and more cost-effective while helping you gain access to 190+ countries worldwide.