The Indian textile and clothing industry registered a 5.37 per cent export growth during 2017 as against the global export growth of 3.94 per cent.

Countries like Germany, Vietnam, Spain and India are capturing the export space vacated by China.

During 2017, India was the largest cotton yarn exporting country, registering a 25 per cent global market share. Yarn export increased by 7.21 per cent during this year when compared to 2016.

The Indian spinning sector’s long pending demand for extending the MEIS benefit for cotton yarn export is yet to be considered. If considered, this would enable the Indian spinning segment to have a level playing field and utilize the surplus spinning capacity and also convert the 60 lakh to 70 lakh bales of raw cotton being exported into value added yarn and thereby create new jobs for several thousands of people and increase forex earnings.

The yarn market has gained momentum in recent times. The unsold yarn stock level is one of the lowest in recent years. Taking advantage of increased fabric demand, yarn prices increased to a certain extent during May 2018 when compared to the previous month.

The demand for coarse and medium counts especially open end yarn both in the domestic market and export market has increased considerably and several mills have got advance bookings.