Textile Demand to Bounce Back in FY23: Ind-Ra

Due to the gradual decrease in the impact of Covid-19’s third wave, the textile demand is expected to speed up in FY23 as per the India Ratings and Research (Ind-Ra).

Reduction in logistics problems for export demand will help in maintaining vigorous demand, said the rating agency.

After seeing a slight dip in 1QFY22, the domestic demand for all the textile sub-sector has continued to improve from 2QFY22, which also increased the realisation along with the increased demand momentum and supply chain issues, were the key findings

Moreover, it said that demand for MMF (man-made fibre) has continued to increase, mainly due to the rise in cotton prices, leading to a shift of demand from cotton to MMF, to an extent.

It also highlighted that due to improved consumer spending the demand momentum sustained for home textiles in the domestic market.

With regards to textile exporters in the cotton yarn segment continued to witness an improvement during 7MFY22 with volumes exceeding 47 per cent YoY over FY21, the agency cited.

In view of increasing demand for Indian yarn, the rating firm expects export volumes to remain higher for FY22 over FY20 and FY21.