Winning Bizness Economic Desk
The southern state of Tamil Nadu (TN) has remained the top exporting state in textile goods during the last fiscal (year-ending March 31, 2025, or FY 25).
It has also widened its lead over the second highest exporter—the western coastal state of Gujarat.
In 2024-25, out of India’s total textile exports of goods worth USD 36.61-billion, Tamil Nadu’s contribution was USD 7.99-billion or 26.81 per cent share.
In comparison, in 2023-24, out of India’s total textile exports of USD 34.43-bllion, the state’s contribution was USD 7.15-billion (20.78 per cent), according to data available in the Centre’s Niryat portal.
Tamil Nadu’s lead over the second-highest exporter Gujarat has increased by over 700 basis points (bps) in 2024-25.
In 2024-25, Maharashtra was a distant third with exports of USD 3.83-billion (12.84 per cent), data shows.
Out of the total exports of textile goods, ready-made garments contributed to USD 15.99-billion, followed by cotton yarn/fabrics/made-ups and handloom products with USD 12.06-billion; man-made yarns/fabrics/made-ups with USD 4.87-billion and the balance split amongst handicrafts, carpet and jute manufacturing, the data showed.
The Apparel Export Promotion Council’s (AEPC)’s Vice-Chairman Mr A Sakthivel was quoted in the media as saying that the Tiruppur knitwear cluster played a pivotal role in the performance with exports worth USD 4.69-billion (Rs 40,000-crore) last year.
The Director-General and CEO of the Federation of Indian Export Organisation (FIEO), Mr Ajay Sahai, told a leading media publication that Tamil Nadu’s impressive performance in textile exports during 2024-25 is a testament to the state’s well-established eco-system, policy support and industry resilience.
Here, it is important to highlight the several factors that have contributed to the growth in Tamil Nadu’s textile industry.
The southern coastal state boasts a very strong value-chain—from spinning and weaving to garmenting and export—supported by a skilled workforce and strong infrastructure, particularly in textile clusters such as Tiruppur, Coimbatore and Erode.
The rise in exports is also a reflection of improved logistics, port infrastructure and the government responsiveness to exporters’ needs.
India’s Forex Reserves Rise by USD 8.31-bn to USD 686.145-bn
The country’s foreign exchange reserves climbed up USD 8.31-billion to USD 686.145-billion for the week ended April 18 of this year (2025).
The significant highlight here is that this is the seventh consecutive week of an increase.
The reserves had moved northward by USD 1.567-billion to USD 677.835-billion in the previous reporting week ended April 11.
The forex reserves had touched an all-time high of USD 704.885-billion in end-September 2024.
For the week-ended April 18, the Foreign Currency Assets (FCAs), a major component of the reserves, increased by USD 3.516-billion to USD 578.495-billion, the Reserve Bank of India (RBI) data showed.
Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units such as the Euro, Pound and the Japanese Yen held in foreign reserves.
Gold reserves increased by USD 4.575-billion to USD 84.572-billion during the week.
The Special Drawing Rights (SDRs) were up by USD 212-million to USD 18.568-billion, the Reserve Bank showed.
The country’s reserve position with the International Monetary Fund (IMF) also increased by USD 7-million to USD 4.51-billion in the reporting week, the RBI data showed.
IMF Trims India’s GDP Growth Forecast for FY 26 to 6.2 pc
The International Monetary Fund (IMF) has revised downward its India GDP growth projection for this fiscal (FY 26) to 6.2 per cent from its earlier projection of 6.5 per cent.
The globally-renowned entity cited global uncertainties and trade tensions as reasons for its downward revision of India’s GDP growth forecast.
For the next fiscal (FY 27), India’s GDP is projected to expand by 6.3 per cent as per the IMF’s last World Economic Outlook (WEO) report.
In its January report, the IMF had pegged the country’s 2025-26 GDP growth at 6.5 per cent.
“For India, the growth outlook is relatively more stable at 6.2 per cent in 2025, supported by private consumption, particularly in rural areas, but this rate is 0.3 percentage points lower than that in the January 2025 WEO update on account of higher levels of trade tensions and global uncertainty,” the IMF observed in its report.
The International Monetary Fund’s projection is lower than the Reserve Bank of India (RBI)’s estimate of 6.5 per cent.
In its monetary policy review earlier this month, the Reserve Bank trimmed its India FY 26 growth projection to 6.5 per cent from 6.7 per cent. The Economic Survey has pegged FY 26 growth in the range of 6.3 per cent-to-6.8 per cent.
A point to note here is that the IMF has reduced its US economic growth projection by a full percentage point to 1.8 per cent while China’s growth forecast has been lowered to four per cent from January’s projection of 4.6 per cent.
Goa, Kanpur, Lucknow Lead Tier 2 Real Estate Boom in Country
In an important development, across the country real estate markets in Tier 2 cities are showing a huge capital appreciation.
According to latest data from Magicbricks, a well-known real estate platform quoted in a report in a leading media publication, the average capital appreciation in these cities has reached 17.6 per cent, surpassing Delhi’s 15.7 per cent gain.
Among the leaders, Kanpur and Lucknow have reported substantial Year-on-Year (YoY) appreciation rates of 24.53 per cent and 22.61 per cent, respectively.
This surge is attributed to expanding infrastructure, growing demand and the relative affordability of these locations compared to the national capital.
The point to highlight here is that Goa has emerged as a stand-out performer in western India, recording an extraordinary YoY capital appreciation of 66.37 per cent. This makes the state one of the most dynamic markets in the region.
The average price per square foot (sq ft) in Goa reached Rs 13,290/-, still very much lower than Mumbai’s Rs 28,921/-.
An increased demand for second homes, robust rental yields and tourism-related investments are driving such impressive growth.
Magicbricks’ Chief Marketing Officer, Mr Prasun Kumar, said that “Tier 2 cities in north India are no longer secondary markets—they’re becoming prime investment destinations.”
He also pointed to the rising investment potential in these regions due to expanding infrastructure and modern housing supply.
In the northern part of India, Tier 2 cities such as Lucknow, Kanpur and Dehra Dun present considerable investment opportunities due to their comparatively lower real estate prices.
While Delhi’s average price stands at Rs 18,618/- per sq foot, Lucknow, Kanpur and Dehra Dun offer more affordable options at Rs 6,394/-, Rs 6,986/- and Rs 5,653, respectively.
These cities are attracting young professionals and first-time home-buyers contributing to their rapid growth.
The northern Tier 2 markets are benefiting from strategic infrastructure development and a rising influx of new residents. These factors have further boosted their appeal as prime investment destinations.
Here, it must be pointed out that in the southern and eastern regions as well, Tier 2 cities are similarly thriving.
Kochi in Kerala has registered a 16.55 per cent capital appreciation, substantially higher than Chennai’s 11.9 per cent.
Patna, the capital of Bihar in east India, has also demonstrated a healthy appreciation--at 15.15 per cent, marking the city as a high-growth market.
What needs highlighting here is that consistent growth is supported by infrastructure development and a huge demand for affordable housing.
Overall, Tier 2 cities across India are not just emerging as affordable alternatives but are also becoming attractive investment hubs thanks to expanding infrastructure, increasing demand from young buyers and attractive investment returns.
Emphasis on developing modern housing and supporting infrastructure continues to make these cities attractive to investors seeking higher yields and value growth.
It is now becoming increasingly clear that with many Tier 2 cities outperforming established urban centres, they are set to play a crucial role in shaping the future landscape of India’s real estate market.
