About the Textiles Sector
India is one of the largest textile producers and exporters in the world. It is the 2nd-largest producer of Man-Made Fabrics (MMF) Fibre and the 3rd-largest exporter of textiles and apparel in the world. The textile manufacturing industry in India is diverse, containing a comprehensive range of textiles, which includes apparel, technical textiles, traditional handloom textiles and home textiles.
Domestic textile and apparel production in India contributes about 2.3% to the country’s GDP, 12% to exports, and 13% to industrial production. In FY 2022, the country’s textile and apparel exports (including handicrafts) touched US$ 44.4 billion, reflecting a YoY rise of ~ 41%.
To attract private equity and employ more people, the Indian government introduced several schemes, such as the Technology Upgradation Fund Scheme (TUFS), Mega Integrated Textile Region and Apparel (MITRA) Park Scheme and Scheme for Integrated Textile Parks (SITP).
Future Outlook of the Textiles Sector in India
The market size of the Indian textile industry is expected to grow at a CAGR of 10% and reach US$ 350 billion by 2030. By FY 2026, the total textile exports are predicted to reach US$ 65 billion. The medical textiles market for drapes and gowns in India was around US$ 9.71 million in 2022, and by 2027, it is expected to reach US$ 22.45 million.
Things To Consider Before Investing in the Textiles Sector
- Supply chain dynamics: Assess the efficiency and resilience of the textile supply chain. Consider key factors like raw material sourcing, production processes, and distribution networks.
- Environmental and sustainability practices: There is a rise in the number of consumers and investors who are focusing on sustainable and eco-friendly practices. Evaluate how companies in the sector address environmental concerns and adhere to sustainable manufacturing practices.
- Market demand: Evaluate current market trends, consumer preferences, and overall demand for textile products. Understand the impact of fashion cycles and changing consumer behaviour on the industry. This will have an impact on the company’s products and business.
- Competition: Check the competitive landscape to identify key players and their market share. Understand how companies differentiate themselves from competitors and their strategies for market dominance.
- Regulatory compliance: Understand the regulatory environment governing the textiles industry. Compliance with labour laws, environmental regulations, and safety standards is crucial for long-term success.
How To Invest in Textile Sector Stocks?
Investing in textiles stocks via Angel One is easy. Simply follow these steps:
- Log in to your Angel One account.
- Click on the search icon and look for your desired textile sector stock.
- Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.To complete your transaction, click on the ‘Buy’ button.
If you don’t have a Demat account with Angel One, you can open one for free online within minutes.
