Synthetic textile manufacturers in India hope to see a turnaround. In a major relief for domestic synthetic textile producers, the rupee has depreciated over 11 per cent so far this calendar year. There was a 47 per cent increase in imports of readymade garments made out of manmade fiber between April and July this year compared to the same period last year. Import of manmade staple fibers, yarn, fabrics and made-ups jumped y 26 per cent for the four month period ending July 2018 compared to the same period last year.
Synthetic textile manufacturers are hoping imports of readymade garments slow on the rupee depreciation. While rising crude oil prices have made the inputs of synthetic textiles costlier, the rupee depreciation will make import prices worthy and exports profitable.
The major part of this rupee fall was seen post-April. However, export orders booked after April will start getting executed now. Hence its impact would be seen partly in the September quarter and fully in the December quarter. Thus, India’s exports of synthetic textiles are set to revive in the September quarter. India’s exports of synthetic textiles and raw materials declined in some categories while others remained flat during the April–July 2018 period.