The hosiery industry in India is developing a cost index. This is a step toward making the industry more aware of its costing and profitability.

This will be the first cost index for any textile industry segment in the country. It will enable companies to benchmark their pricing to a systematic cost plus scenario. It highlights the average movement in costing for a representative basket of hosiery goods over a period of time. If the cost was Rs 100 in January 2010, and the index is 132 today, it means over the period the cost for the industry has gone up by 32 per cent though specific products may have gone up more or less depending on its specifications.

The index gives a broad idea for the industry as a whole. Its relevance is more in giving an idea of the direction of the movement of costing rather than any absolute movement. Over time the hosiery index is expected to become a reference point for the entire hosiery and knitwear industry.

India’s Rs 8,000 crores hosiery market currently has an equal percentage of branded and non-branded players. Ludhiana's hosiery industry also supplies a range of sweaters, pullovers, jackets, shawls and blankets.