Textile sector sees revival of investments

For the textile and covering industry, the past 4th of FY 26 and the archetypal 4th of the existent fiscal twelvemonth person seen maturation successful demand, triggering investments.

“After 2022, the manufacture saw request picking up crossed the textile worth concatenation from January to mid-May. There is simply a slowdown successful request present aft withdrawal of the import work connected cotton. We anticipation the concern volition stabilise successful a period oregon so,” said K. Selvaraju, caput generatl of the Southern India Mills Association.

“All the bully performers are investing now, expanding capacities. Investments are not decided based connected the show of 2 oregon 3 months. For the larger industries, the investments were planned astatine slightest 7 oregon 8 months before. They are looking astatine semipermanent growth,” added Chandrima Chatterjee, Secretary General of the Confederation of Indian Textile Industry.

Yarn exports from October 2025 to March 2026 were higher compared with the aforesaid play the erstwhile twelvemonth successful quantity. Export of fabrics picked up and past saw a dilatory down. Similarly, the spike successful yarn prices did person an interaction connected garments and made ups for a fewer weeks. Now, the autumn successful fabric prices has again led to driblet successful demand.

“When the marketplace revives, it takes astir 3 months for the full proviso concatenation to benefit. Cotton imports person crossed 40 lakh bales betwixt October 2025 and May 2026. Another 15-20 lakh bales are expected to travel successful by the extremity of September. Cotton prices crossed ₹75,000 a candy and are dropping now. This has led to slowdown successful demand. Everyone is waiting to spot however overmuch the prices volition fall. The full concern volition beryllium wide successful the adjacent fewer weeks,” added Mr. Selvaraju.

Meanwhile, textile mills are said to beryllium investing successful both, modernisation and enlargement projects though the nonstop concern information is not available. Some of the mills are investing to marque worth added yarns and immoderate others are modernising and going successful for much automation, accidental manufacture sources.

Implementation of the Free Trade Agreement with the UK is expected to bring successful much orders for garments and madeup. Another $10 cardinal summation successful exports volition enactment the full textile worth chain. However, the West Asia warfare and uncertainties successful the US tariff are a substance of concern, the sources said.