An analysis from B&K Securities predicts that the Indian textile industry will undergo changes in 2024 as a result of good geopolitical situations, strong consumer expenditure in important industries, and increasing demand in export markets.
In 2024, there will likely be a significant improvement in the demand for ready-made garments (RMG) in export markets.
Because of overstocking from the previous fiscal year and decreased discretionary expenditure, domestic demand is predicted to stay modest, while export demand is showing signs of strength. The second half of FY ’25 may see a little increase in realisations, although the domestic market could benefit from an increase in wedding days and the festive season.
A number of variables, including restocking by Western retailers, rising demand for spring-summer collections, and an overall uptick in retail sales, are anticipated to propel RMG’s export growth.
The US’s projected interest rate reduction will boost demand even further. Stable cotton pricing and continuous supply will also help India’s RMG exports by improving cost competitiveness internationally.
For a limited time, Indian exporters are helped by the current turmoil in Bangladesh, a significant player in the global RMG market. The advantages for India, however, should only last temporarily because of Bangladesh’s trade agreements with the European Union and variations in product portfolios.
With global consumers continuing to diversify their supply chains away from China and Bangladesh, India may see more significant gains over the medium to long term. This is especially true given that Bangladesh is facing issues including growing salaries and losing its Least Developed Country (LDC) designation by 2029.
Because the United States, which accounts for around 60% of India’s home textile exports, has solid consumer spending, the home textiles market is expected to maintain its upward trend. The adoption of the China+1 strategy by big box retailers to diversify their supply chains has contributed to the steady increase in the market share of Indian firms in the US.
India will probably continue to dominate the US home textile market thanks to its lower cost of raw materials and growing local capacity.
Increased growth prospects are provided by the Free Trade Agreement (FTA) negotiations with the UK and the EU, which could result in higher profits and a larger market share for Indian companies.
Even though the business is doing well, it nevertheless confronts short-term difficulties including the Red Sea crisis’ logistical ramifications and low domestic cotton prices. Furthermore, in order for Indian textile industries to be competitive, they will need to make investments in conformity with these changing standards as sustainability becomes a significant subject in Western markets.
An analysis from B&K Securities predicts that the Indian textile industry will undergo changes in 2024 as a result of good geopolitical situations, strong consumer expenditure in important industries, and increasing demand in export markets.
In 2024, there will likely be a significant improvement in the demand for ready-made garments (RMG) in export markets.
Because of overstocking from the previous fiscal year and decreased discretionary expenditure, domestic demand is predicted to stay modest, while export demand is showing signs of strength. The second half of FY ’25 may see a little increase in realisations, although the domestic market could benefit from an increase in wedding days and the festive season.
A number of variables, including restocking by Western retailers, rising demand for spring-summer collections, and an overall uptick in retail sales, are anticipated to propel RMG’s export growth.
The US’s projected interest rate reduction will boost demand even further. Stable cotton pricing and continuous supply will also help India’s RMG exports by improving cost competitiveness internationally.
For a limited time, Indian exporters are helped by the current turmoil in Bangladesh, a significant player in the global RMG market. The advantages for India, however, should only last temporarily because of Bangladesh’s trade agreements with the European Union and variations in product portfolios.
With global consumers continuing to diversify their supply chains away from China and Bangladesh, India may see more significant gains over the medium to long term. This is especially true given that Bangladesh is facing issues including growing salaries and losing its Least Developed Country (LDC) designation by 2029.
Because the United States, which accounts for around 60% of India’s home textile exports, has solid consumer spending, the home textiles market is expected to maintain its upward trend. The adoption of the China+1 strategy by big box retailers to diversify their supply chains has contributed to the steady increase in the market share of Indian firms in the US.
India will probably continue to dominate the US home textile market thanks to its lower cost of raw materials and growing local capacity.
Increased growth prospects are provided by the Free Trade Agreement (FTA) negotiations with the UK and the EU, which could result in higher profits and a larger market share for Indian companies.
Even though the business is doing well, it nevertheless confronts short-term difficulties including the Red Sea crisis’ logistical ramifications and low domestic cotton prices. Furthermore, in order for Indian textile industries to be competitive, they will need to make investments in conformity with these changing standards as sustainability becomes a significant subject in Western markets.
