HomeNewsHome textile exporters see a ray of hope

Home textile exporters see a ray of hope

Ongoing trade war between USA and China has given a ray of hope for the Indian Home Textile exporters. Its hoped that if the trade talks fail between these two countries, USA may hike import duries on several commodities including home textiles imported from China which make products from that country costlier. Its expected that if the talks fail Chinese home textiles may attract duties as high as 25%.  

According to some home textile exporters, over the last couple of months, there has been an increase in enquiries for Indian products due to the potential escalation of the US-China trade war. However, these enquiries have not yet been converted in orders till now.

On the export front, things are not yet normal for the home textile exporters due to stagnant/declining exports. For example, in April 2019, India’s market share in home textile exports to the US (sum of all products) declined 2ppt YoY to 32%. At the same time, India’s market share in terry towel exports to the US (in USD terms) increased by 2ppt YoY to 40%, while cotton sheet market share declined significantly by 7ppt YoY to 45% on a monthly basis.

Prevailing uncertainty has also impacted expansion plans some of the companies. For example, Indo Count Industries Ltd, a fully integrated home textiles manufacturer, has decided to hold back its second phase of expansion plan at Kagal in Maharashtra. The company had planned capex of Rs 475 crore in 2017, to be implemented in two phases. In the first phase Rs 175 crore was to be spent and the company has already completed the first phase at Kagal which has taken the capacity to 90 million meters.

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