Analysts believe the textile industry will see a revival in demand. The year FY ’23 was difficult for textile companies due to low demand, retailers’ excess inventory, a lack of supplies, and rising cotton prices. Having said that, they now believe the worst is over and that demand will soon increase again.
As international retailers lower their stocks, textile industry participants anticipate that demand will increase by the third quarter of FY ’24. Some market participants noted that as global retailers begin placing orders for their summer/spring 2024 collections, trade volumes are anticipated to increase even more in the second half of FY ’24.
“Reduced inventory on shelves of global retailers and likely mean reversal of inventory to sales ratio over time is expected to lead to a stronger second half of FY ’24 demand outlook,” said JM Financial Institutional Securities.
Additionally, a number of factors, such as rival nations facing geopolitical uncertainty, are seen colouring the sector. Observers predict that this will result in stronger cash flows and sustained earnings growth for companies in the textile industry.
Analysts indicated that textile players are prepared to take advantage of their increased capacity because material expenditure is already behind schedule. Along with stressing the fact that the sector has effectively increased market share in the garments and home textile categories in important export markets, it also noted that lowering cotton and crude costs are projected to boost margins and improve India’s competitiveness in export markets
Bharat Tex Special Report 2026 
