Strong domestic demand boosts textile sector

Top Stories

»	49% Indian startups now from tier 2, 3 cities: Jitendra Singh
»	'India ranks 3rd in global startup ecosystem & number of unicorns'
»	Tripura exported over 9K tonnes of pineapples in 2 years
»	CPI inflation eases to 6.71% in July, IIP falls to 12.3%
»	Rupee depreciates 12 paise to close at 79.64 against US dollar

Namrata Kath Hazarika | 03 Aug, 2012
The textile and clothing industry has picked up growth since May this year, buoyed by strong domestic demand, said the Clothing Manufacturers Association of India (CMAI).

"Because of the introduction of excise and very high prices of raw materials, there has been a bit of slowdown in the market. The slowdown has lasted till the middle of summer this year," said CMAI President, Rahul Mehta.

"But May this year onwards the market has started picking up once again, and we expect that our domestic market will grow around 10-15 percent in the upcoming quarters this fiscal," he added.

At present, the demand is flowing from the domestic markets, he told SME Times.

He added domestic garment demand grew 15 to 20 percent last year.

In a similar tone, the Confederation of Indian Textile Industry Secretary General, D.K.Nair said that the domestic seasonal demand has already started flowing in. "The festivals are round the corner and there is a plenty of seasonal demand flowing in the domestic market. Usually, by July-end onwards festival orders start flowing in that helps the sector to grow."

He added that there is an indication that the cotton prices are increasing and demand for yarn is picking up in the domestic market.

The current market size of the India textile and clothing industry is estimated to be at USD 55 billion.