India Ratings and Research (Ind-Ra): Textile demand expected to increase in FY23

11 February 2022, Mumbai:

Textile demand would be boosted in FY23, according to India Ratings and Research (Ind-Ra), due to a reduction in the impact of Covid-19's third wave, as well as quicker re-opening efforts.

Reduced logistics concerns for export demand would help to maintain demand robust.

Domestic demand for all textile sub-sectors has improved since Q2 FY22, after a modest fall in Q1 FY22, according to the report.

The realisations have risen as a result of the rising demand momentum and supply chain difficulties. Cotton demand remained at an all-time high in the second half of FY21, resulting in lower opening stock for the current cotton season.

Cotton prices have risen, prompting spinners to stockpile the commodity. It went on to say that demand for MMF (man-made fibre) has continued to climb, owing in part to rising cotton costs, which has resulted in a shift in demand from cotton to MMF to some extent.

Because of increased consumer spending, the demand for home textiles remained strong in the domestic market.

ALSO READ: India’s Textile and Clothing (T&A) exports increased in rupee terms: April-December 2021

During the first seven months of FY22, textile exporters in the cotton yarn category continued to see growth, with volumes increasing by 47 percent compared to FY21. On the strength of rising demand for Indian yarn, the agency anticipates export volumes to stay higher in FY22 than in FY20 and FY21.

During the first eight months of FY22, fabric and clothing exports returned to pre-Covid levels, and this trend is expected to continue as economies open up and importing nations embrace the 'China Plus One' policy. 

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*Figures mentioned in the above article have been sourced from Business Standard & Apparel Resources article.