India-South Korea bilateral trade witnessed a remarkable growth of 17 per cent in 2022, amounting to $27.8 billion. The two countries have been strengthening their trade ties, with India’s apparel exports to South Korea witnessing an impressive surge of 51 per cent in the same year.
However, India’s exports of fabric and yarn to South Korea observed a decline in 2022, raising concerns for the Indian textile industry. India’s fabric exports to South Korea reduced to $131.948 million in 2022 from $153.951 million in 2021, while yarn exports were worth $133.765 million, lower than the shipment of $184.032 million in 2021.
The decline in fabric and yarn exports could be a cause for concern as India’s fabric and yarn exports are of higher value than apparel. It is essential to explore ways to strengthen the trade relations between the two countries to enhance exports of all textile products.
India and South Korea have a long-standing trade relationship, and the two countries have been working to increase bilateral trade in various sectors. In the textile industry, India has been exporting apparel, fabric, and yarn to South Korea, while importing limited quantities of fabric from the country.
The Indian government has been working towards boosting the textile industry’s growth and exports, with initiatives like the Production-Linked Incentive (PLI) scheme for the textile sector. This scheme aims to provide financial incentives to textile manufacturers to enhance their production and competitiveness in the global market.
In conclusion, the growth in India-South Korea bilateral trade in 2022 is a positive sign for both countries, with apparel exports registering a remarkable surge. However, the decline in fabric and yarn exports is a concern, and there is a need to explore ways to boost these exports to enhance the Indian textile industry’s growth.