Job losses are feared in India’s textile sector. There has been a sharp decline in exports of textile products from India. Exports of cotton yarn and handloom products registered a 40 per cent slump in September 2022.

Due to rising input costs and weak demand -- both in the domestic and foreign market -- textile hubs in Surat and Andhra Pradesh have cut short the number of working days. The textile hub in Tirupur which is home to nearly six lakh semi-skilled textile workers is the hardest hit as it is dependent on demand from the US and European markets. Instead of running for six or seven days a week, units are operating for four to five days a week so that at everyone is employed and survival is ensured.

If the war continues and demand slows down further, the number of operating days will fall further. Demand from both the western markets is down by almost 50 per cent and large companies are placing lower orders despite the peak season. The industry would wait for the festive season to get a boost but ever since Covid the demand has never really revived. However from December onward textile exports could jump could be expected hopefully.