According to foreign reports, affected by the global economic recession, the Indian textile industry has felt the cold wind. The impact of the recession on new orders received by Indian exporters is clear. Industry bodies and businessmen said export orders for clothing and home textiles from the United States and Europe fell by about 15%-20% as Western retail brands faced slow demand.
In Panipat, an important center for home textile production, there are signs that export orders have dropped by as much as 40%. It is reported that inflation and rising interest rates caused by the Russia-Ukraine war are the reasons for the economic recession and reduced export orders.
Industry sources said importers from Western countries have not only reduced orders for the next season but also delayed deliveries of previous orders. Last month, importers for several home textile exporters refused to accept deliveries. Buyers say retail sales in Western countries have slowed sharply due to high inflation. Warehouses are filled with unsold goods. Therefore, it is impossible for them to deliver immediately.
Exporters from Panipat, after attending a trade fair in Germany in June, said they had received 40% fewer export orders for home textiles than last year. Ramesh Verma, a Panipat exporter and member of the Handloom Export Promotion Council, said big companies and retail brands from the US and Europe purchased a large number of home textile products last year, but retail sales remained very weak. Therefore, they have to buy less, and exporters have fewer orders for the next season.
Narendra Goenka, chairman of the Indian Apparel Export Promotion Council, had earlier said that apparel export orders are expected to decrease by about 15% to 20%. Indeed, the current situation around the world remains uncertain. Foreign buyers are wary of placing new orders.
Exporters are currently placing orders for Christmas and next summer. A Tiruppur exporter said the impact of the economic downturn on export orders in the textile industry was clear. In western countries, due to inflation and unfavorable economic conditions, the average consumer does not have enough money to purchase textiles and other discretionary items.
However, some experts hope that the situation will improve in the coming months. Most foreign buyers have placed orders for the upcoming Christmas in December this year. Buyers import winter goods from other countries instead of India. Indian exporters get more orders in summer. If the global economic situation improves, export orders may increase.
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