Experts believe, the current trend of uncertainty in the textile and apparel sector is transitory and vibrant domestic consumption will drive demand in the next few with exports volumes reviving. Since last three months, Indian textile and apparel sector has been facing several challenges in demand and operational profits.
Domestic consumption is expected to grow nominally due to GDP expansion and the economy opening up. The $85 billion apparel industry will expand at least 5 to 7 per cent this year. As per Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation (ITF), demand for yarn and fabric is expected to surge with the approaching festive season.
Buying will reappear as raw material prices have fallen and manufacturers have exhausted their inventories, he adds. Supply of yarn and fabrics dropped in May. This is expected a favorable demand trend in the upcoming cycle, he adds..
Buyers are expected to reappear with pre-COVID levels of orders once their inventories decline due to current discounts, indicate international buyers.
US data for May indicates strong import trend. The US imported Rs. 66,000 crore worth of apparels in May, which is higher by 5 per cent compared to the previous 3 months’ average. Reduction in freight and raw material cost will also help in boosting overseas demand for textiles.
