Textile production grew by 3.7% year on year in September, surpassing the 1.6% increase recorded in August.
After undergoing contraction for a year, textile production and exports are returning to normal. The industry has successfully eliminated inventory pileup, while the accumulation of stocks preceding the Christmas holiday season in the West continues to propel export demand. In September, the industry experienced its third consecutive month of expansion, and experts anticipate that this growth will persist in the second half of 2023-24.
A senior official, who preferred not to be identified, mentioned, “We anticipate an increase in production for the remaining part of the year. Similarly, last year witnessed a turnaround post January.”
According to the Index of Industrial Production (IIP) data released a fortnight ago, textile production grew by 3.7% year on year in September, surpassing the 1.6% increase recorded in August.
Sanjay Jain, chairman of the national expert committee on textiles at the Indian Chamber of Commerce, stated, “The industry has reached its lowest point and is currently undergoing a revival phase. The inventory buildup that occurred during the Covid period has been resolved, and the de-escalation of the Ukraine war is contributing to the industry’s improvement.” He further added that textile exporters believe the country can achieve an 8-10% annual increase in exports in FY24. Due to the improving demand scenario in the US, Australia, and the UAE, inquiries have risen by 10-20% compared to last year. The US, along with the European Union, is one of the largest importers of textiles.
Ashok Rajani, founder chairman of Midas Touch Exports, expressed confidence, stating, “We will sustain this growth because the US had reduced buying due to the war and is now low on inventory. We expect growth in the next 4-6 months as the feel-good factor is coming back. The order book is 15-20% better than what it was 4-5 months ago.”
According to data from the Ministry of Commerce and Industry, exports of cotton fabric, yarn, and handloom products increased by 5.7% during April-October, compared to the April-August period when they were 2% lower than last year’s levels.