Pandemic-induced challenges slows textile growth

However, the textile industry expanded at a much slower pace. Though it recovered from the strong contraction in 2020, the industry failed to reach pre-pandemic levels. Textile production during the quarter increased 2.4 per cent from the Q4 FY20 while turnover increased 6.4 per cent. Retail sales in textile industry grew 17.9 per cent during the quarter. The pandemic slowed shipments besides disrupting global supply chains. This caused acute raw material shortages, affecting consumption patterns across the world. The textile and clothing industry also remained troubled by the constant rise in raw materials and energy prices.

The EU Business Confidence Indicator indicates 1.7 points decline in textile industry over the next few months. The decline is mainly attributed to energy-related challenges currently being faced by the industry. The clothing industry seems more optimistic with a 2.1 points rise in business confidence in the next few months