Indian textile and apparel industry has started improving. India Ratings & Research has claimed this in its report.
The report claims that apparel exports have recovered significantly starting June-July and order book build up in August was strongly supported by restocking at global retailers and global sector consolidation.
Big companies are benefitting from the shift in market share to India from China and large companies have largely been able to resolve labour mobility and availability concerns.
It also says that the US-China trade war has impacted imports from China into the US, thereby giving a strong push to exports from India.
The report reads that man-made fibres (MMF) and cotton yarn segments are expected to recover on the back of pent-up demand.
Both segments should start benefiting from the low raw material prices in the Q3 this financial year. MMF and yarn segments’ volumes have improved to 50-80 per cent of the normal levels in August.
The volume recovery of pure MMF and yarn should be quick, but has started relatively late from August, while the cotton and blended spinners volumes started recovering in June.