Manufacture of textiles carry a weight of 3.2913 percent in overall industrial production in India. The manufacturing of textiles index fell to 105.5 in August 2022 from 120.2 in August 2021. During April -August 2022 the manufacture of textile dipped by 4 percent compared with the same period of 2021. The cumulative index also came down from 113.8 to 109.3.
Manufacture of wearing apparel has a weight of 1.3225 in overall IIP of India. The decline in apparel index was sharper than that of manufactured textiles. The apparel index slipped to 117.7 in August 2022 from 144.1 in the corresponding period of last year depicting a decline of 18.3 percent. The performance of the apparel sector on August 22 must be a cause of worry for apparel players. The apparel sector was performing well before August. This is reflected in cumulative index that managed to register a growth of 26.6 percent to reach 136.2 from 107.6 of April-August 2021.
IIP reflects the sluggish demand of the textile value chain that resulted in decline in prices. The Indian textile industry had been facing a shortage of cotton coupled with sky-rocketing prices. The demand according to industry sources has further declined.
