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Home textile exporters to show 20-25% growth in FY22

Aug 20, 2021
Home textile exporters to show 20-25% growth in FY22

New Delhi

The home textile exporters are going to show growth at a rate of around 20-25% in 2021-22 with healthy margins, according to ICRA.

This robust performance of the Indian home textile exporters is because of the pandemic-induced lifestyle changes which have made people more conscious about their hygiene and have also created a culture of stay-at-home. As per the report, the sales for the past three quarters have been 25-40% higher than the 3-year average for the pre-COVID period. It is believed that the home textile exports was the first segment that recovered well from the impact of the pandemic, said Pavethra Ponniah, Senior Vice President and Co-Group Head, Corporate Sector Ratings, ICRA.

The largest market for export is the US which accounts for 60% of the total home textile exports from the country. As compared to a 9% increase in India's home textile product exports of $ 5.7 billion in FY21, the exports to the USA have increased by 4% whereas the exports to the other markets like the UK and the EU have declined. Ponniah also said that this increase in exports to the USA is partly attributable to the distribution model for these products. A large number of departmental chains remained open even during the lockdown phase. Also, due to a strong festive demand this year and favourable vaccination across key markets are some other factors that led to a healthy environment for the Indian home textile exporters, said the report.

ICRA also said that the larger exporters have a robust backlog and will rely more on job-work or they might outsource to fulfil their delivery commitments in the next few quarters.

Source – Business Standard

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