India’s textile industry is beginning to see some signs of recovery following the challenges of the Covid-19 pandemic. Many exporters expect to see better orders this year compared to last year but remain cautious, according to a new report by institutional research business Avendus Spark.
As global fashion retailers return their inventory levels to those of before the pandemic, India’s textile industry is receiving more international orders once again, Asian News International reported. However, although order volumes are up in many of the country’s textile hubs, the order cycle remains shorter than before the pandemic and is expected to remain this way for the near future leaving businesses waiting for their order book momentum to pick up, according to Avendus Spark’s report.
The drop in Indian cotton prices compared to global cotton prices has made the country’s cotton industry internationally attractive. Many cotton spinning businesses have increased their sales volume and the fourth quarter of the 2024 financial year saw revenue in the industry increase by 8% year-on-year. Although the drop in yarn prices put a cap on overall growth, the stabilising cotton prices should mean that value and volume growth become more closely aligned.
“The top layer of exporters has started getting booked,” said Fashinza’s co-founder and CEO in reaction to the report, ET Bureau reported. “The next couple of layers of exporters in most of the big hubs are getting many enquiries and everyone is hopeful that these enquiries will result in an order book that would be better than last year.”
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