India's textile sector managed to grow approximately one per cent in financial year ’16. This stands out in comparison to a five per cent slump in the global textile market in the same period. And this growth also needs to be looked at in conjunction with lower fiber prices in financial year 2016, adjusted for which the growth in India’s apparel export quantity is estimated at three to four per cent.

Demand in the global market across sectors remains muted amid a slowdown. Though India has a marginal share of four per cent in global apparel trade, India overtook Germany in 2015 to become the fifth largest apparel exporter after China, Bangladesh, Italy, and Vietnam. In contrast to apparel exporters, domestic players continued to post steady revenue growth in financial year ’16, though it was moderate compared to the healthy growth seen in financial years 2012 and 2013.

Fabric production in the country remained flat in financial year 2016. Despite the volatility in cotton prices, as also the spread between cotton yarn and texturized filament yarn, the share of cotton fabric in India’s total fabric production has demonstrated a secular growth over the years. The aggregate revenue of 10 large fabric manufacturers in India grew by six per cent in financial year 2016.