Russia's INSTC may open new market for Indian textile export

16 Jul '22

2 min read

Pic: 123rf.com

Indian textile industry can expect a boost to apparel and textile exports to Russia and other countries in the region as International North-South Transport Corridor (INSTC) will connect Moscow to Mumbai through multi-mode transportation facilities. The corridor is expected to decrease the time taken for goods from India to reach Russia and other countries.

Indian exporters can explore new opportunities in Russia and other countries because it is untapped market yet.

The first container train has left Moscow this week to reach Mumbai in 35-37 days, according to Russian logistics firm RZD Logistics, which has commenced the full container trains service from Russia to India through eastern branch of INSTC. The train service will run through Russia, Kazakhstan, Turkmenistan, Iran and India. The logistic facility will move via train, then will take sea route to reach Nhava Sheva (Mumbai) after covering distance of over 8,000 kilometres.

RZD Logistics is the largest multimodal logistics operator in the CIS and Baltic countries.

Created in order to develop the logistics business segment of Russian Railways Holding, the company is among the leaders of Russian logistics market and offers its clients a wide range of services, including international container transit and supply chain management.

With the start of the new service, Indian textile industry has opportunity to explore new markets for its apparel and other textile products. Currently, the US, UAE, UK, Germany and France are the top five markets for Indian apparel exports. Russia and other countries in the region are among the least explored markets for Indian textile products.

Russia’s share was mere 0.45 per cent in Indian apparel exports of $14.825 billion in 2021, according to Fibre2Fashion’s market insight tool TexPro. Its share stood at only 0.30 per cent in the total export of $6.451 billion during the first five months of 2022.

In India’s home textiles exports too, Russia’s share was only 0.28 per cent out of total export of $8.830 billion in 2021. Russia’s share stood at 0.16 per cent in total home textile export of $2.844 billion during the first five months of 2022.

As per TexPro, India’s apparel export to Russia stood at $15.922 million in January-March 2022 quarter, $17.718 million in October-December 2021 and $12.632 million in July-September 2021. Likewise, home textile export to Russia stood at $4.133 million in January-March 2022, $6.593 million in October-December 2021 and $6.399 million in July-September 2021.

Fibre2Fashion News Desk (KUL)

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