Published
Nov 7, 2022
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Gujarat textile industry challenged by inflation

Published
Nov 7, 2022

Gujarat’s textile industry is feeling the effects of inflation in Europe and the US. As the region’s home textiles sector sends the majority of its products for export, it is expecting a challenging coming six months, expounded by high raw materials costs. 

Gujarat has a large home textile manufacturing industry


“Cotton price fluctuations have affected the textile sector across the world,” said the co-chairman of the Gujarat Chamber of Commerce and Industry Textiles Committee Rahul Shah, TNN reported. “Gujarat is a large manufacturer of home textiles and around 80% of our production is meant for export. However, order levels are currently low. High raw material costs and low demand has affected margins of our manufacturers significantly.”
 
Inflation has particularly affected demand from the US and Europe. Not only has consumer retail spending in the regions decreased, many stores have had lower inventory. 

The industry is hoping demand will pick up in the coming months due to lower cotton prices. As Indian manufacturers currently hold a low stake in the global home textiles market, there exists a large opportunity for Indian manufacturers to increase their share.  
 
“We expect that once cotton prices stabilise, Indian players will be in a better situation,” said Shah. “This year, Indian cotton was more expensive than global rates so the playing field was not level for Indian manufacturers.”

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