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Textile sector to recover to pre-COVID levels by FY2022

Jan 15, 2021
Textile sector to recover to pre-COVID levels by FY2022

ICRA, a leading rating agency, said that the textile industry’s performance will go back to pre-COVID levels in the next fiscal year owing to increase in demands from the domestic as well as export markets.

The agency said that opening up of markets and improved consumer confidence levels will support the recovery of the Indian textile sector in 2022. This builds on the growth in the recent months which had been supported by pent-up demand and onset of festive buying.

ICRA said India’s apparel exports are also estimated to return to a growth trajectory in FY2022 due to recovery in demands from the US and European markets. The export demand is expected to be partially benefit from the low base effect and also because many large players are looking for sourcing options beyond China. However, there is a risk of a second wave and infections, predicts ICRA.

Festive buying and pent-up demand seemed to have helped the domestic apparel market recover and reach pre-COVID levels. Improved demand from downstream segments will boost fabric production to growth in the next fiscal year. Cotton and blended knitted fabrics will see a growing demand as consumer preferences towards casualwear, loungewear and activewear rise.