Cotton yarn is 65 per cent of yarn production in India. Non-cotton and blends form the other 35 per cent. Going forward, focus on cotton is expected to reduce with more attention being paid on the non-cotton segment. Diversification to other fibers can make India more competitive in the global yarn market.

Over the last two or three months, yarn exports from India have picked up and overall the industry can be better if this situation continues. For the industry to be in good condition, 100 to 110 million tons of export of yarn from India have to happen. Some 47 million spindles are working in India and on an average the country produces 350 million tons of yarn out of which 100 million tons need to be exported. In 2019, till October, the average was below 70 million tons of export. The financial ecosystem is not conducive to lend to the textile ecosystem. That is a challenge. Once finance is available, there will be no stopping the Indian spinning sector from modernizing and expanding in a big way. Also India is weak in post spinning. There are no high speed looms and the dyeing and processing segments are also weak in India. In the garmenting sector, India has small-size units and scale is a big issue.