A major rise in cotton yarn exports owing to lower domestic raw cotton prices, coupled with a small increase in textile demand from the US and European markets, has contributed to a humble recovery in the labor-intensive textile industry of the country, which has been struggling since the pandemic.
As per the official data from the Niryat Portal, exports of ready-made garments, cotton yarn, and fabrics from October 2023 to May 2024 totaled US $ 17.9 billion, in comparison to US $ 17.5 billion during the same period last year, marking a reversal of the falling trend. Yarn exports have seen a considerable 51 per cent growth in volume during this period.
Nevertheless, industry experts caution that these early signs of recovery may not be sustainable without ample policy support. “Demand is still beneath pre-COVID levels. Moreover, fresh increases in cotton prices have counterbalanced the price benefit for textile manufacturers,” noted an industry observer.
Bharat Boghra, Chairman of the Spinners Association (Gujarat) (SAG), emphasised the positive conditions for Indian cotton, such as better production in comparison to the US and Brazil and lower prices related to international markets, which have boosted demand. Yet, he highlighted concerns about continuing geopolitical uncertainties impacting consumer behavior and global demand dynamics.
Ramakrishnan M, MD of Primus Partners, accredited the textile industry’s emerging recovery, citing stable domestic demand and growing e-commerce activities in Tier-2 and Tier-3 cities as contributing factors. Nevertheless, he pointed out challenges like global conflict, growing production costs (particularly freight charges), inflationary pressures, and passive consumer confidence affecting global demand.
Bhavin Parikh, MD & CEO of Globe Textiles India, highlighted the positive impact of the “China+1” strategy and shifts in spending patterns on the industry’s revival. However, he noted a careful industry sentiment reflected in the stagnation of the order book cycle to over three months, indicative of unpredictability’s in global economic growth prospects.
Lately, Textile Minister Giriraj Singh declared government considerations to comprise garments in the PLI Scheme for the Textile sector and renewed the Scheme for Integrated Textile Parks (SITP), setting a goal of US $ 50 billion in shipments from the textile industry for the present year.
