After a 41 per cent rise in India’s textiles and apparel exports to $44.4 billion in 2021-22, the rise in cotton and yarn prices is leading to a 10 per cent drop in export demand during the current financial year, as per Wazir Textile Index. The index shows, last year, sales of all top leading textile companies including Welspun, Vardhman, Arvind, Trident, KPR Mills, Indo Count, RSWM, Filatex, Nahar Spg, and Indorama, increased. Welspun’s sales grew 13 per cent while Vardhman’s sales surged 60 per cent. Arvind reported 65 per cent growth in sales while Trident saw sales rising 54 per cent rise in sales in 2021-22, compared to the pandemic-hit 2020-21.
Majority of export demand came from the US, which made up 27 per cent of India's textiles and apparel exports, followed by 18 per cent the European Union, 12 per cent by Bangladesh and 6 per cent by UAE. However, these companies witnessed a decline in demand during the first two months of current financial year
The rise in raw materials prices slowed textile and apparel demand across the country, says Narendra Goenka, Chairman, Apparel Export Promotion Council (AEPC). AEPC also blamed the Ukraine crisis for the dip in export demand from the US and Europe as it resulted in a rise in energy prices. New garment companies from countries like the Czech Republic, Egypt, Greece, Jordan, Mexico, Spain, Turkey, Panama, and South Africa are negotiating with the Indian companies, though these orders are minimal compared to last year, say industry players.