Global slowdown continues to dent textile exports
News: Textile exports for August continued to witness a slowdown as exports of ready made garments declined ~ 11% MoM (0.4% YoY) and exports of cotton yarn and fabrics declined 7% MoM (32% YoY). Significantly higher cotton prices and slowdown in key exports market such as the US and Europe (owing to higher inflation) have impacted the trajectory for textile exporters.
View: Among categories, cotton yarn and home textile segment were the worst impacted as its monthly run rate has declined 32% to US$0.8 billion from March 2022 levels (US$1.3 billion). Also, exports of RMG were down 23% at US$1.2 billion after registering an all-time high of US$1.6 billion in March, 2022.