India's Textile and Stocks

 30 March 2023, Mumbai 

Talking about the contribution of this sector approximately 2% of India's GDP, or 7% of industrial production in value terms, comes from the ever-growing domestic garment and textile sector (T&C) of India. Whilst in 2020–21, textile, apparel/clothing, and handicraft exports made up 11.4% of all Indian exports, it is a ‘Key Contributor’ to the Nation's Economy.

A glimpse of the Indian textile industry; India is where it all started.

Again, India contributes to 4% of the (T&A) textile and clothing trade globally. Quite proudly, India is one of the world's top producers of jute and cotton. Another distinction India enjoys is around 95% of the hand-woven fabric in the world originates from India, which is also the world's second-largest producer of silk.

What all you need to know

Exploring the Diverse Sub-Sectors of India's Thriving Textile Industry

The Rise of Technical Textiles in India: Opportunities and Challenges

Not only that, the technical textiles market in India is thought to be about $16 billion, or around 6% of the worldwide market.

The second-largest employer in India away from agriculture the textile and garment (RTW) sector employs 45 million people directly and another 100 million indirectly via affiliated businesses.

India is now the world's 2nd-largest producer of personal protective equipment (PPE). PPEs are well predicted to reach a global market value of over $92.5 Billion by the year 2025, up from $52.7 Billion in 2019.

As a ballpark currently, more than 600 businesses in India are certified to make PPEs.

India is a country with a 'Textile heritage'

One of the nation's oldest sectors, the textile industry in India has been around for many years. The textile business is incredibly diverse, with the capital-intensive sophisticated mills' sector at one end of the spectrum and the hand-spun and hand-woven textiles sector at the other as growth is the way to go.

Beyond Fabrics and Garments; A Closer Look at India's Textile Sector; India's textile industry has a significant manufacturing base of a variety of fibres and yarns, including natural fibres like cotton, jute, silk, and wool as well as synthetic, man-made fibres like polyester, viscose, nylon, and acrylic.

The major segment of the textiles industry is the decentralized power looms, hosiery, and knitting sector.

As compared to other industries in the nation, the textile industry is distinctive due to its tight ties to agriculture and the old culture and traditions of the nation in terms of textiles.

The textile sector in India has the ability/heft to manufacture a vast range of goods that are suited for various market niches both domestically and globally.

Government initiatives to rejuvenate

Made in India for the world; Union Minister Piyush Goyal stated that India aims to increase its technical textiles industry from $22 billion to $40 billion over the next 4-5 years and he has time & again confidently alluded it is achievable & is not an aspirational vision.

The textiles minister also stated their aim to create a domestic technological textiles industry worth up to $300 billion by 2047 in a virtual address at a conference on geotextiles. India now ranks as the world's fifth-largest manufacturer of technical textiles, with a market worth close to $22 billion.

Goyal further stressed the importance of concentrating on enhancing productivity at the industrial and supply-chain levels to meet these goals going forward.

Technical textiles take a center stage; Technical textiles are useful materials that are used in a variety of fields, such as automotive, civil engineering, healthcare, agriculture, personal protection, and construction.

"To innovate and create appealing items that will eventually become worldwide brands, we will need to use economies of scale and focus on research and development.

He said furthermore, "For this goal, strong inter-ministerial collaboration is taking place, which would open up opportunities for the growth of the technical textiles industry in India and is an idea whose time has come as it is manufacturing moment for India.

Exploring the Vibrant and Complex Landscape of India's Textile Industry.

In the case of the Indian textile industry, some of these moats include access to low-cost labor, plentiful raw materials, and a well-developed/well-oiled supply chain. These factors have helped Indian textile companies to be fiercely competitive in the global marketplace.

More than anything else, the Indian textile industry vastly gains out of robust domestic demand as well. Textile products in India are related to certain cultural and traditional practices adding credence.

Additionally, what catalyzes demand tailwind is festivals and other events in countries like India for textile products, especially during the festive season.

Quite logically this very cyclicality can lead to serious fluctuations in the stock prices of textile companies/sectors as such, and involved investors need to be aware of these patterns when making informed investment decisions.

Finding the best opportunities in the stock market

A few publicly listed companies in this sector are: Alok Industries, Arvind, Vardhman Ltd, The Raymond Organization, KKCL Ltd, Trident Ltd. Lux Industries Ltd., Welspun India Ltd. Vardhman Textiles, Sangam India, etc as some day has arrived for the industry to make best out of 'Share Market Investment Textile Stock Market Reflects Resilience & Growth Potential Amidst Pandemic Challenges; Opportunities' to be long on the Indian retail investors increasingly looking for the financialization of assets in India and, as its no more textile sector moment where the sun is not shining on this sector anymore and lenders/lending institutes are at times shying away from lending to this sector Or have we oversold Indian textile story.

Sense of entitlement; The Indian textile industry boasts unique competitive advantages, including access to low-cost labor, abundant raw materials, and a well-developed supply chain.

Domestic demand is tied to cultural traditions, and festival seasons can create a surge in demand.

Investors should be aware of cyclical price changes and other challenges when investing in this industry as you cannot decide if your metrics are too high.

Understanding Textile Stocks: A Guide to Investing in the Textile Industry

A textile stock represents a company that manufactures or deals in textiles. Simplistically speaking these stocks can be bought and sold on the stock market/bourses. If you're interested in investing in textile stocks, keep reading to learn about the right/top options available anytime/any day of the year.

Exploring the Benefits of Investing in Indian Textile Stocks

We have to mention here that, the Indian textile industry has witnessed remarkable growth since the Covid-19 pandemic, making it an attractive investment opportunity as everybody acknowledges today it is time for India today.

With plentiful raw materials in the background, including a self-reliant cotton production ecosystem, and government continuous initiatives to promote exports and encourage investment, there are bright prospects/silver linings for investors.

Again, the industry is projected to grow to US$190 billion by 2025-26.

What Lies Ahead? : The Indian textile industry sits today in a sweat spot/Rising India & has several unique advantages that make it stand out from other industries globally.

Needless to say, investors need to be mindful all the time of the odds and opportunities presented by the very cyclicality of the industry, alongside other influencing factors that can impact stock prices either way, factors like raw material costs, labor costs, and supply chain disruptions to name a few.

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