- 16 May 2023
- ICICI Securities
TOUGH START FOR INDIAN TEXTILE EXPORTERS IN FY24
News: Post the recovery witnessed in textile exports in March 2023, April saw exports declining sequentially. RMG exports declined 17% QoQ (down 23% YoY) to US$1.2 billion, whereas exports for cotton yarn and home textile declined 13% QoQ (down 23% YoY) with monthly run rate slipping again below the US$1 billion mark ($0.8 billion).
Views: The ordering pace by global retailers appears to have slackened after March 2023. This signifies that demand in the export markets is yet to stabilise and probably the global retailers are ordering in smaller lots compared to the normal order size, which is negatively impacting the order book of Indian exporters across the textile value chain. A sustained recovery would be visible once the existing inventory held by global retailers reduces to normal re -ordering levels and improvement of demand scenario in key export markets, which are facing a challenging economic scenario with fear of recession still not fading away.
Impact: Negative