India is expected to witness a boost in apparel and textile exports to Russia and other nations 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 the movement of goods from India to Russia and other countries.
This also opens new opportunities for Indian exporters to explore Russia and other countries because it is yet an untapped market.
Earlier this month, Russian logistics firm RZD Logistics commenced the first container train service from Russia to India through an eastern branch of INSTC, which left Moscow to reach Mumbai in 35-37 days. The train service will run through Russia, Kazakhstan, Turkmenistan, Iran, and India. The logistic facility will move via train, then will take the sea route to reach Nhava Sheva (Mumbai) after covering a distance of over 8,000 kilometers.
RZD Logistics is the largest multimodal logistics operator in the CIS and Baltic countries.
The commencement of this new service has brought opportunities for the Indian textile industry 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, while Russia and other countries in the region are among the least explored markets for Indian textile products.
Out of the $14.825 billion apparel export of India in 2021, Russia has a mere share of 0.45 percent, according to Fibre2Fashion’s market insight tool TexPro. Its share stood at only 0.30 percent in the total export of $6.451 billion during the first five months of 2022.
In 2021, out of $8.830 billion in Indian home textiles exports, Russia held a share of only 0.28 percent. Russia’s share stood at 0.16 percent 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.