A recent survey conducted in India shows that output in the Indian wool textile industry is currently expanding very solidly, supported by good export demand.
Production increased strongly in the March quarter, with growth assisted partly by the installation of additional wool spinning capacity. Wool's share also lifted during the March quarter, however this could be partly a seasonal effect.
Reflecting this industry growth, Australia's raw wool exports to India continue to increase. Australia's raw wool exports to India have been trending up steadily since reaching a low point in April 2003. In February 2007, the latest month for which data are available, trade with India showed no signs of slowing.
India is the third largest export destination for Australian raw and semi-processed wool with purchases increasingly concentrated in the 20-23 micron range, and vulnerable to shrinking supplies in this micron range due to the 2006 drought.