Indian textile sector reportedly noted around 1 per cent growth in FY 2016, standing out in comparison to a 5 per cent decline in the global textile market in the same period.
According to ICRA Research report, this muted growth is in conjunction with lower fibre prices in FY ’16, adjusted for which the growth in India’s apparel export quantity is estimated at 3-4 per cent. The growth quantum is reasonable in the backdrop of 5 per cent decline in import quantity of Europe and 6 per cent increase in import quantity of the US; albeit feeble in comparison to Bangladesh and Vietnam.
The report pointed out that the fabric production in the country remained consistent in the period under review at 65.6 billion square metres. “Despite the volatility in cotton prices, the share of cotton fabric in India’s total fabric production has demonstrated a secular growth over the years, including during FY2016,” it mentions.
The domestic players continued to record steady revenue growth in the period under consideration in contrast to apparel exporters. ICRA analysed 13 apparel manufacturers and found that their aggregate earnings surged by 7 per cent in fiscal 2016 compared to 8 per cent in FY 2015, 9 per cent in FY 2014 and 12 per cent in FY 2013, showing a slowdown in the domestic consumption as well.