Textiles industry expects to reach stability in 2022
Following significant disruption in the 2021 financial year, due to the coronavirus pandemic and a challenging road to recovery, India’s textile sector expects to reach stability in the 2022 financial year.
Consumer ratings business ICRA is confident that 2022 will see a stabilisation of India’s textile sector with cotton spinning and apparel export segments faring especially well. Cotton spinning and apparel exports could increase by 15% to 20% in the 2022 financial year, it said.
Fabrics and domestic apparel segments could grow by between 30% to 35% and 35% to 40%, respectively. However, these segments are expected to have seen steeper declines in the 2021 financial year.
“As demand continues to normalise in domestic as well as export markets, we expect the textile sector performance to recover to pre-Covid levels in FY2022 at a broader level,” said Jayanta Roy, ICRA’s senior vice president and group head, Corporate Sector Ratings, the Press Trust of India reported.
“Accordingly, ICRA's textiles sector outlook for FY2022 is stable.”
Thanks to vaccination rollouts and increased positive consumer sentiment, ICRA is confident that the worst of the pandemic is over. With economies opening up and a boost in domestic and export demand, the textile sector can expect the positive sentiment of the recent third quarter of the 2021 financial year to continue in the upcoming quarters.
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