India textile exports set for best year in FY22

News: According to Outlook, India's textile and apparel exports have witnessed robust growth of ~31% YoY to US$ 29.8 billion during April-December, 2021. The textile sector in India has continuously maintained a trade surplus with exports being significantly higher than imports.

Views: The major contributor to export growth has been the cotton yarn and home textile segment, followed by apparels. The Cente had set a target of US$44 billion in FY22 of which 67% has already been achieved (FY20: US$33 billion). We believe Indian textile exporters are on the cusp of a breakout with robust opportunities lying ahead owing to China+1 strategy. Key beneficiaries: KPR Mill, Gokaldas Exports, Indo Count and Vardhman Textiles.

Impact: Positive.