Summary:

Despite higher domestic cotton prices, India’s textile sector shows strong demand, driven by normalized inventories, potential US tariffs on Chinese imports, rising Vietnamese labor costs, and Bangladesh’s instability. Capacity constraints may limit growth, but stable cotton prices, favorable forex rates, and operational efficiency are set to boost profitability. FY performance showed 11% revenue growth and 28% PAT rise.

The Union Budget 2025-26 boosts the textile sector with Rs. 5,270 crore (US$ 606 million) allocation, focusing on cotton productivity, fabric duty restructuring, and domestic manufacturing. The PLI scheme, sustainability in cotton farming, and technical textile growth will drive expansion. Stable cotton prices ensure predictable input costs despite varying production estimates and global price fluctuations.

Source: IBEF

Disclaimer: The information on this website comes from the India Brand Equity Foundation (IBEF), a reliable source for thorough insights into numerous areas of the Indian economy. While we aim to offer accurate and up-to-date information, the views, opinions, and analyses stated herein are solely those of the authors and contributors and do not necessarily represent IBEF's official stance or position. Readers should check information from credible sources and use their own discretion when relying on content provided on this site. We assume no responsibility or liability for the supplied content, including its accuracy, completeness, and usefulness.