Home / Knowledge / News / Textiles / Improvement expected in textiles production: FICCI survey
Improvement expected in textiles production: FICCI survey
Jul '17
For the April-June 2017-18 quarter, a little over two-fifths of participants expect their production level to be similar to that of same quarter last year, while a third expect it to be higher as compared to the same over the same period, says the latest FICCI quarterly survey on Indian manufacturing sector, based on responses from both large units and SMEs.

For the same quarter, about 35 per cent of the sample respondents reported higher number of orders on a sequential basis while similar proportion reported no growth, the report said.

On an annual basis, half of sample covered is expecting exports to remain subdued in April-June quarter whereas about a quarter are expecting exports to be slightly higher than those of last year. Well over 90 per cent of the respondents feel the recent rupee appreciation would affect exports in the range of 0-5 per cent while a similar proportion expects imports to get cheaper by the same magnitude.

The average capacity utilisation of the textiles and technical textiles sector is hovering around 83 per cent with about 53 per cent of the respondents operating at the same capacity as that of last year. Given an already high capacity utilisation, almost 60 per cent of the respondents do not foresee any growth in the same especially when demand is not expected to rise much.

About 63 per cent of the respondents in textiles sector have reported that their current inventory level is at par with their average inventory level while a quarter are reportedly having higher inventories.

Almost three quarters of the covered sample indicated that they are not planning to hire new workers in next three months while others responded affirmatively.

While the average cost of credit for the sector is around 9.5 per cent, but some of the respondents reportedly were availing the same at around 14 per cent.

On the expected outlook, almost 70 per cent of the respondents are confident about manufacturing growth to revive in coming months while a quarter expects it to remain at the current level in the near future, according to the survey. Suggestions to stimulate growth in the sector include reduction in transactional costs (energy, transportation costs, etc), need to further rationalise cotton cost and procurement procedure, reduction of interest rates, and increase in rate of interest subvention for exports.

Almost 70 percent of the sample respondents indicated an increase in cost of production, primarily due to higher input costs including power and labour. Units in textiles sector are significantly affected by high prices of raw materials, labour related issues and low domestic and export demand.

Additionally, industry has suggested that some of older legislations like Hank yarn obligation, Hand loom Reservation Act, Pollution control norms, etc need a revision as such obligations create impediments to growth of the textile industry. (RKS)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: Sourcemap

Apparel/Garments | On 17th Oct 2018

Sourcemap launches 1st free digital map of apparel units

New York-based software company Sourcemap recently launched the Open...

US apparel industry is already highly tariffed: AAFA

Apparel/Garments | On 17th Oct 2018

US apparel industry is already highly tariffed: AAFA

The American apparel and footwear industry is highly tariffed, as per ...

USAID backs East African firms to become more competitive

Apparel/Garments | On 17th Oct 2018

USAID backs East African firms to become more competitive

The US Agency for International Development Hub in East Africa is...

Interviews View All

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli, Epson, For.Tex & F.lli Robustelli

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Janak Dhamanwala & Sunil Dhamanwala, Jansun

Janak Dhamanwala & Sunil Dhamanwala

Moving towards sustainability is also a social change

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Melissa Tate, University of New South Wales

Melissa Tate
University of New South Wales

<div><div><div><div><b>Melissa Tate</b>, a well-known scientist currently...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Dave Rousse, INDA

Dave Rousse

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Bani Batra,

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

October 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search