Growing Manufacturing Demand Drive Recovery in Textile Industry

GROWING MANUFACTURING DEMAND DRIVES RECOVERY IN TEXTILE INDUSTRY

The coronavirus outbreak, which began at the end of 2019, has had an impact on the global textile and apparel industry. Despite the drawbacks, there is a positive side: the coronavirus crisis has been transformed into an opportunity by so many people, organizations, and industries. The textile sector is one of them.

Textile exports, which fell by nearly 87 percent to $390 million in the first five months of fiscal year 2020-21, rebounded strongly in the same period this year. Textile exports increased by 787 percent to $3.46 billion in April 2021, albeit on a lower basis. According to Boston Consulting Group, the global textiles and apparel sector market was worth $1.9 trillion in retail in 2019 and is expected to grow at a compound annual growth rate of 3.5 percent to $3.3 trillion by 2030.Quick urbanisation growth in the population and increased disposable income in developing countries were predicted to fuel demand in the future, according to projections released ahead of COVID-19. Over the past year, the sector has seen its share of difficulties. Nonetheless, the sector has managed to stay afloat despite the challenges. Particularly after the first wave, when orders from western countries began to pour in. The export-driven recovery began in earnest earlier this year. Clothing is one of the most basic human necessities, which is why the online clothing sector had constant demand even during the lockdown.

Bedsheets, pillow covers, and towels are in high demand as a result of the COVID-19 pandemic. With the recovery in global demand, stocks of textile manufacturers focused primarily on exports have steadily risen in recent days. Home textiles such as bedsheets, pillow covers, table linens and towels are being purchased more frequently in the United States as the fear of a Covid-19 starts to fade with the introduction of a vaccine. Furthermore, people who work from home have more time to pay attention to the aesthetics of their homes and spend more money on home textiles.

The market for smart textiles is being driven by advancements in wireless technology and a growing demand for connectivity. Fabrics that can interact with their surroundings are known as smart textiles. Physical stimuli, including thermal, mechanical, electrical, and chemical sources, can cause them to react.

According to Upendra Prasad Singh, Secretary, Union Ministry of Textiles, demand for Indian textiles and garments has recovered, particularly in the US, EU, and UK markets, indicating that the industry can increase exports by 33% this fiscal year. The Indian textile industry, according to Moody’s Investors Service Company ICRA, is currently on the path to recovery after the worst of the pandemic’s effects have passed. The rating agency modified the Indian textile sector’s outlook for FY2022 to ‘stable’, but warned that risks persist due to the pandemic’s ongoing impact. T. Rajkumar, Chairman of the Confederation of Indian Textile Industry, stated that the textile industry has been performing well throughout the value chain for the last year.

Textile Value Chain Editorial Team

Key Points

• Positive Impact of COVID-19 • Importance of clothing • Demand of home textile products rised during Pendamic • Importance of smart textile • Tactical changes that will be required for boosting the country’s overall image in textile sector

Lenzing has published its first-quarter financial results. TENCEL lyocell and modal fibres, as well as LENZING ECOVERO viscose fibres, have seen

strong growth in recent years. This has been aided greatly by the Indian region. The government has also provided the industry with significant support via innovative initiatives like planned mega textile parks, providing it the essential drive to become competitive and draw huge investments through the development of state-of-the-art infrastructure.

The Ministry of commerce and industry stated that, according to estimates from the Reserve Bank of India, exports of textiles and apparel from India increased in August 2021. Man-made textiles and cotton are expected to have climbed by more than 50% year on year, whereas ready-made apparel exports are expected to have grown by around 15%.

The Indian textile sector stayed afloat thanks to demand from western markets. According to Ind-Ra, the industry may not have a ‘lost quarter’ in the first quarter of this fiscal year due to stable export markets. The textile industry, which responded with agility by working out enough inventories, has also learned a lot from Covid-19 and the shutdown, which we believe will benefit the industry and allow it to recover faster than predicted. Clothing is one of life’s most essential needs, and that is why the online textile industry saw a surge in sales even during the shutdown. Because of its functions in the online world, which leaves no place for human or physical interaction, the lockdown had no detrimental influence on the online textile sector. Because it is not reliant on the offline textile business, which includes wholesalers, distributers, retailers, middlemen, and so on, the online textile industry has seen a surge in sales. This resulted in a rise in manufacturing demand. To reboot and rebuild their economies, countries should move quickly and strategically. Failing to do so risks increasing the gaps in wealth, technology, and productivity gaps among nations. To make such shifts, a set of tactical changes will be required, such as enhancing and widening processing capabilities, narrowing the development gaps, creating sustainable textiles and clothing manufacturing capacity, and boosting the country’s overall image as the second largest textile manufacturer.

It will be difficult to overcome the pandemic’s challenges and to recover swiftly. It will necessitate new alliances and approaches that offer economic benefit. However, in the long run, governments and businesses that can adapt to new changes and connections will prosper the most.

References:

https://www.thehindubusinessline. com/markets/stock-markets/textilestocks-bounce-back-on-global-recovery/ article33784967.ece

https://yourstory.com/smbstory/howcovid-19-shaped-textile-industry/amp https://www.business-standard.com/article/companies/demand-from-westernmarkets-helped-indian-textile-sectorstay-afloat-121070200690_1.html https://www.fibre2fashion.com/news/ textile-news/demand-continues-torecover-in-indian-textile-sector-icra271854-newsdetails.htm

NEWS UPDATE

BANGLADESH MOVES TOWARDS HIGHER EXPORTS

Bangladesh’s garment output increased 11.48 percent between July and September of this year. According to preliminary data released by the Export Promotion Bureau, readymade garment (RMG) exports from Bangladesh increased by 11.48 percent to $9.059 billion in the first three months of fiscal 2021-22, compared to $8.126 billion in the same period the previous fiscal. Knitwear exports increased faster than woven RMG exports. According to the data, knitwear exports increased by 15.69% to $5.164 billion in July-September 2021-22, compared to $4.463 billion in the previous fiscal period. Woven apparel exports increasing at a steady rate of 6.35 percent to $3.895 billion during the review period, compared to $3.662 billion during the comparable period of 2020-21. Woven and knitted apparel and clothing accessories exports accounted for 82.19 percent of Bangladesh’s total exports of $11.021 billion during July-September 2021-22. Meanwhile, home textile exports (Chapter 63, excluding 630510) increased by 10.65% to $279.23 million during in the multiple period under review, up from $252.35 million in July-September 2020-21. Bangladesh’s readymade garment exports increased by 12.55 percent to $31.456 billion in the fiscal year ending June 30, 2021, likened to $27.949 billion the previous fiscal year. Moreover, this figure was fairly low than the $34.133 billion in exports made during the July-June 2018-19 time span.