Textile Industry Sees Revival Amid Rising Domestic and Export Demand
By 2024-07-10 11:55:02
Growth in Domestic and Export Demand Drives the Textile Industry's Revival
The textile industry is seeing a moderate revival due to rising domestic demand and a significant increase in cotton yarn exports driven by lower domestic cotton prices. Slight improvements in demand from the US and European markets have also contributed to this recovery.
According to Niryat Portal data, exports of readymade garments, cotton yarn, and fabrics reached $17.9 billion from October 2023 to May 2024, up from $17.5 billion in the same period the previous year. Yarn exports alone grew by 51% in volume.
Despite these positive signs, experts caution that the recovery is fragile and requires policy support. The demand remains below pre-Covid levels, and recent spikes in cotton prices have neutralized cost advantages for manufacturers.
Bharat Boghra, Chairman of the Spinners Association (Gujarat) (SAG), noted the competitive edge of Indian cotton due to higher production and lower prices compared to the US and Brazil. However, he warned of potential challenges due to ongoing geopolitical crises and short order cycles.*
Ramakrishnan M, Managing Director of Primus Partners, highlighted steady domestic demand bolstered by expanding e-commerce in tier 2 and 3 areas. However, he expressed concerns over rising production costs, global inflation, and muted consumer confidence impacting the industry's outlook.
Bhavin Parikh, MD & CEO of Globe Textiles India, pointed to the China+1 policy and changing consumer behavior as factors aiding the industry's recovery. Still, the short order cycle reflects a lack of confidence in global economic growth.
Textile Minister Giriraj Singh recently announced plans to include garments in the PLI Scheme for the Textile sector and revive the Scheme for Integrated Textile Parks (SITP), aiming for $50 billion in shipments this year.
