During Mar-2021, textile exports increased by 30% YoY to US$1.36bn, compared to US$1.04bn in the same month last year. Growth during the month was essentially a recovery, given the poor performance of textile exports in Mar-2020 owing to the lockdowns.
Had the pandemic not occurred, the growth in Mar-2021 would have been closer to ~3.5% YoY and not 30% YoY (using average MoM performance for March over February during 2015-2019 and applying it to Mar-2020, ceteris paribus).
Value-added categories continued to drive growth in textile exports during March, led by Knitwear and Bed-wear sectors with increases of 50% YoY and 44% YoY, respectively, comfortably outpacing the 23% YoY growth seen in garments. Demand for home textiles has been higher than garments in recent months, which has largely been due to the changing global dynamics amid the pandemic.
Despite issues of cotton availability for local value-added players, yarn exports increased during the month by 39%. In order to fully realize the potential of current demand, availability of raw material (cotton and yarn) should be among the key priorities for policymakers.
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