India's fabric exports to Iran fail to improve despite trading in INR

19 Aug '23

2 min read

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Insights

India and Iran's arrangement to trade in INR since November 2019 has not boosted textile trade.
Fabric exports to Iran fell sharply in 2020 and have not recovered to 2019 levels.
In 2022, India's share in Iran's fabric imports was only 0.05 per cent.
India has started trading in INR with other countries including Sri Lanka, Nepal, Bangladesh, and Russia.

India and Iran adopted an arrangement in November 2019 to facilitate bilateral trade in Indian Rupee (INR), however, this failed to boost textile trade between the two nations. India exports fabric and apparel to Iran.

India exported fabric worth $2.091 million from January to May 2023 to Iran. The shipment was recorded at $28.006 million in 2019, but it plummeted to $8.152 million in 2020 due to COVID-related disruption, according to Fibre2Fashion’s market insight tool TexPro. Fabric exports were recorded at $8.548 million in 2022 and $23.946 million in 2021.

India's apparel exports were noted at $2.665 million in 2019. Subsequently, the trade was $3.119 million in 2020, $2.645 million in 2021, and $4.647 million in 2022. During the first two months of this year, the shipment was noted at just $0.372 million.

As per TexPro, India’s share in Iran's total fabric imports of $572.629 million was just 0.05 per cent in 2022. Iran imported about 95 per cent fabric from the top three suppliers: United Arab Emirates, China, and Turkiye.

Besides Iran, India has also started trading in INR with countries like Sri Lanka, Nepal, Bangladesh, Bhutan, and Russia, the minister of state for commerce and industry Anupriya Patel recently said in a written reply in the Lok Sabha.

Fibre2Fashion News Desk (KUL)

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This according to Fibre2Fashion's Market Intelligence Tool - TexPro