Cotton exports rise as textile industry makes comeback.

The global textile industry is bouncing back, with inventory levels returning to normal and revenue rising 8 per cent year-on-year. However, garment companies remain cautious as order book growth hasn't fully recovered.

Cotton price fluctuations impacted profits. While a temporary price advantage boosted cotton spinners, yarn price declines limited overall growth. Home textile companies, however, thrived with a 16 per cent value increase, driven by Indian dominance in US cotton sheet imports.

The Man-Made Staple Fibres (MMSF) sector grew 5 per cent despite competition from cheaper imports. Capacity limitations are a hurdle, but upcoming investments fueled by government incentives are expected to boost production.

Exports are a bright spot, with cotton-related exports soaring 20 per cent sequentially. Cotton spinners also saw a 5 per cent revenue rise thanks to strong volume sales. Garment manufacturers enjoyed improved margins due to lower costs, with vertically integrated players benefiting the most. The recovery is promising, but caution lingers. The report predicts shorter order cycles as companies remain wary of future demand.