The ratings agency mentioned the stability sheets, strengthened by balanced money accrual and debt reduction above the past two fiscals, will lend assistance. Exports account for 60-70% of the Indian dwelling textile industry’s earnings.
The US, the world’s major marketplace, accounts for a sizeable 58% of these exports. International demand for household textiles is envisioned to be impacted in the close to-phrase by inflationary headwinds, with big-box suppliers pruning inventory and customers reducing discretionary spends.
A slowdown in the income of critical US merchants in the earlier 3-6 months triggered an on-calendar year decline of 5-6% in general dwelling textile exports from India amongst January and April 2022. Including to the demand challenge is the rate of uncooked cotton, a essential input in house textiles.