Published on July 21, 2014

Indian Textile sector is expected to revitalize back its growth model which was extremely popular and successful in the financial year 2013/14. According to commerce ministry, export earnings from textile sector rose from 8.78 percent in previous year to 9.72% in 2013/14. If this growth has not taken place then overall export growth would have been less than 3%for India. Textile was fifth most earning sector for the Indian economy. According to Vardhman textiles the major factors attributed for this growth has been the cheap labor cost and its wide availability. Industry has taken the full advantage of this situation. Depreciation of Indian currency has been exploited by the textile industry and has gained huge margins by making hefty exports to European nations.

According to recent published report, China suffered by heavy losses in the year 2013/14 due to its stringent policies for cotton and textile industry. Now China has made amendments in its policies and has decided to make it more industry friendly. The benefit of exchange rate has also diminished coupled with sluggish demand from China market. This is high time for the traders and manufacturers to rethink on their policies and have to discover new markets or have to penetrate into existing countries with new product design and attributes. Company has to focus on innovative ideas for product development and come out with new products as the profit margin they enjoyed is likely to narrow down.
This week prices for Styrene, Para Xylene and PTA all witnessed upward trend. Para Xylene prices swept by USD 70/MTS in last week, creating panic among the industries which are making bounty use of this chemical. Reason held for this increase has been the shortage of material and delay in the starting of Para Xylene plants Korea and China.