The Indian textile industry is gearing up for a promising year, driven by a combination of factors including increased export demand, resilient domestic consumption, and favourable geopolitical conditions.
The ready-made garments (RMG) sector is expected to witness a significant surge in exports, fueled by restocking activities by Western retailers, rising demand for spring-summer collections, and a general uptick in retail sales. Anticipated interest rate cuts in the US will further stimulate demand, while stable cotton prices and uninterrupted supply will enhance India’s cost competitiveness on the global stage.
The ongoing crisis in Bangladesh presents a temporary opportunity for Indian exporters, although the benefits are likely to be short-lived due to differences in product portfolios and trade agreements. Over the long term, India’s strategic position as a reliable and sustainable supplier could attract more global buyers looking to diversify their supply chains away from China and Bangladesh.
The home textiles segment is also poised for continued growth, driven primarily by robust consumer spending in the United States. India’s competitive advantage in raw material costs and increased domestic capacity will likely sustain its dominance in the US market.
Despite a positive industry outlook, logistical disruptions and uncompetitive cotton prices pose near-term challenges. Additionally, the growing emphasis on sustainability in Western markets will require Indian textile companies to invest in compliance with evolving norms to maintain their competitive edge.
