Textile Manufacturing Stable Despite Cost Pressures: FICCI Survey
India’s textile, apparel and technical textiles sector continues to show steady growth momentum despite rising input costs, according to the latest Manufacturing Survey by the Federation of Indian Chambers of Commerce & Industry (FICCI).
The 69th edition of the survey highlights that around 76.4% of textile manufacturers reported stable or higher capacity utilisation, with the sector’s overall utilisation levels remaining healthy even as cost pressures intensify.
For Q4 FY2025–26, about 80% of respondents from the textile segment expect export performance to remain stable or improve compared to the previous year, indicating resilient external demand despite global uncertainties.
However, nearly 70% of manufacturers across industries reported higher production costs, driven mainly by expensive raw materials, logistics, power, and currency fluctuations—factors that are also impacting the textile value chain.
In terms of capacity, the textile sector continues to perform above the overall industry average of 72%, reflecting relatively stronger operational efficiency compared to several other manufacturing segments.
The survey also notes that hiring sentiment remains positive, with 41% of manufacturers planning additional workforce recruitment in the coming months, although the sector continues to face challenges in skilled labour availability.
On investment outlook, textile manufacturers reported stable intentions for capacity expansion over the next six months, despite geopolitical uncertainties and input cost pressures.
While domestic demand remains strong, industry participants highlighted that sustained cost escalation remains a key concern for margins across textiles, apparel, and technical textiles.
Overall, the survey suggests that the sector remains on a stable growth path, supported by steady demand, improving exports outlook, and resilient production activity, even as cost pressures continue to pose challenges.
