India Textile Output Declines In March
India’s textile industry experienced a broad-based slowdown in March, with production declining across key segments amid rising input costs and supply chain disruptions linked to geopolitical tensions in West Asia.
Overall textile manufacturing contracted by 3.6% during the month, reflecting weakness in both upstream and downstream segments. The sharpest decline was recorded in the apparel category, where ready-made garment production fell 14.6% year-on-year. Within this, output of non-knitted garments dropped 14.9%, while knitted garments declined 11%, indicating subdued demand and mounting cost pressures.
Fabric production also witnessed a downturn. Polyester-viscose blended fabrics registered a significant decline of 13.1%, while cotton-based categories showed moderate contraction, with woven cotton fabrics down 4.2% and knitted cotton fabrics falling 4%. The home textiles segment was not spared, with production led by terry towels declining 6.1% during the month.
The slowdown has been largely attributed to a sharp rise in input costs across the value chain. Cotton yarn prices surged by around 20%, while polymers used in packaging became nearly 50% more expensive. Paper costs increased by 10%, and dyes and chemicals saw a steep rise of approximately 40%, adding further pressure on manufacturers’ margins.
At the same time, exporters faced logistical challenges, with shipments to West Asia, an important market for Indian textiles, experiencing delays and disruptions. These bottlenecks have affected trade flows and added to the operational strain on the industry.
Volatility in crude oil prices, driven by ongoing geopolitical tensions, has further compounded the situation by increasing transportation and production costs. With margins under pressure and uncertainty persisting in global markets, the sector is expected to remain cautious in the near term, with output likely to stay constrained until cost pressures ease and supply chains stabilise.
