CRISIL SME tracker predicts textile industry growth in 2023
The textile sector in India will carry forward the growth it has made in Financial Year (FY) 2021-22 to FY23 and will recover from the lows hit during the onset of the pandemic.
New Delhi
The textile sector in India will carry forward the growth it has made in Financial Year (FY) 2021-22 to FY23 and will recover from the lows hit during the onset of the pandemic.
The CRISIL SME Tracker has said that there has been an improvement in the demand for textile products as economic recovery is felt internationally as well.
Indian exports have benefitted due to the US ban on China’s Xinjiang cotton and are likely to continue growing in the medium term, while the impact of the Russia-Ukraine crisis remains monitorable though, said the analysis by CRISIL.
In FY21, the cotton yarn market is likely to grow at 38-42 percent led by exports, which picked up rapidly from the second quarter.
Owing to a sustained recovery in both domestic and export markets, the market is expected to increase a further 8-12 percent year-on-year in the upcoming fiscal year.
After seeing a fall in the last financial year, Readymade garments (RMG) is projected to grow 16-20 percent this fiscal and a further 13-18 percent in FY23, riding on the reopening of offices, and commercial premises, and educational institutions.
With the more significant focus on health and hygiene incited by the pandemic, the home textiles segment is expected to grow.
Source: knowledge and news network
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