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A steep correction in crude oil prices in global markets is likely to shape up well for the domestic Man-made fibers segment as it has the potential to bring down input costs. WTI crude oil futures have been under pressure recently and broke below $70 per barrel in first week of March amid elevated US inventories to test their lowest level in 3 years. Oil market is also worried about OPEC+ plans to increase output in April and U.S. tariffs on Canada, China and Mexico. Meanwhile, OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, decided to increase output for the first time since 2022.
Government committed to "Farm to Fibre, Fabric, Fashion, and Foreign Markets" vision
Bharat Tex 2025, India's largest global textile event, was organized from February 14 to 17, 2025, at Bharat Mandapam, New Delhi. The event spanned 2.2 million square feet and featured over 5,000 exhibitors, providing a comprehensive showcase of India's textile ecosystem. More than 1,20,000 trade visitors, from 120+ countries including global CEOs, policymakers, and industry leaders, attended the event. Bharat Tex 2025 served as a platform to accelerate the government's "Farm to Fibre, Fabric, Fashion, and Foreign Markets" vision. India’s textile exports have already reached ₹3 lakh crore, and the goal is to triple this to ₹9 lakh crore by 2030 by strengthening domestic manufacturing and expanding global reach. The event demonstrated India's leadership in the textile sector and its commitment to innovation, sustainability, and global collaboration.
India is the sixth-largest exporter of textiles globally, contributing 8.21% to the country's total exports in 2023-24. The sector holds a 4.5% share in global trade, with the United States and European Union accounting for 47% of India's textile and apparel exports. From an employment perspective, the textile industry provides direct employment to over 45 million people and supports the livelihoods of over 100 million individuals indirectly, including a large proportion of women and rural workers. It aligns with key government initiatives such as Make in India, Skill India, Women Empowerment, and Rural Youth Employment, reinforcing its role in inclusive economic development.
Focused business area in textiles highlighted at Bharat Tex:
Intelligent Manufacturing
Intelligent manufacturing is revolutionizing the textile industry by integrating advanced technologies and data-driven approaches to improve efficiency, quality, and innovation. This transformation leverages automation, artificial intelligence (AI), the Internet of Things (IoT), and advanced analytics to modernize traditional textile production processes.
Technical Textile
Technical textiles are revolutionizing the textile industry in India by offering innovative solutions across various sectors. These specialized fabrics are designed for specific performance attributes and applications, ranging from automotive and aerospace to healthcare and construction. With a growing emphasis on technology and research, India is positioning itself as a global leader in this field, leveraging its strong textile heritage and advanced manufacturing capabilities.
Home Textile
India's home textile sector is known for its rich traditions and craftsmanship, with various regions specializing in unique textile techniques and patterns. Gujarat is renowned for its vibrant and intricate embroidery, while Kashmir is famous for its luxurious woollen shawls and rugs. This diversity reflects India's extensive heritage and expertise in textile production.
Outlook:
Falling crude oil prices will likely offer some support to the domestic producers of synthetic fabrics. The wholesale price index of Synthetic Yarn stood at 104.60 in January 2025, up 0.10% on year and up 0.19% on month. Prices have been in a tight range over the months and latest tumble in crude oil prices will prevent any upturn in the Synthetic Yarn prices in near term.
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