India' s textile machinery sector to see phoenix-like growth as exports surge

Strict lockdowns and mass vaccination programs helped Indian textile engineering Industry (TEI) stage a quicker-than-expected recovery from the second COVID wave in Q3 and Q4 of 2021-22.

Production value to surge

Figures from Textile Machinery Manufacturers Association (TMMA) (I) show, Indian TEI managed to reduce its annual production losses in 2020-21 by -5 per cent to Rs. 5,093 crore from Rs 5,355 crore in 2019-20. Production of textile machinery is estimated to surge 52 per cent to Rs 8,056 crore during 2021-22 with the value of production including spare parts and accessories estimated to grow 58 per cent to Rs 1,229 crore from Rs 777 crore in 2020-21.

Rise in exports and import

In 2021-22, textile exports are estimated to surge 70 per cent to Rs 5,250 crore. Export of textile spare parts and accessories are also expected to grow 55 per cent to Rs 1,600 crore in 2021-22 from Rs 1,029 crore in 2020-21.

Imports on the other hand are estimated to rise 152 per cent to Rs 11,500 crore in the current fiscal as against Rs 10834 crore in 2018-19, says a Textile Value Chain report. Import of spare parts and accessories are estimated to rise 33 per cent to Rs 2,500 crore in 2021-22 as compared to Rs 1,881 crore in 2020-21.

Weaving and processing orders to rise

The rise in exports and decline in imports can be attributed to the pent-up demand created by the lockdowns of 2020-21 and 2021-22. Exporters rushed in to cash in on the business opportunities thrown in by the liquidity infusion by various governments in the market and revenue spending by consumers.

Industry leaders, especially those involved in the spinning sector, confirmed having enough orders to last till 2023-end. They denied accepting any new orders. Other segments such as weaving and processing have not picked up in proportion to the spinning segment. However, they are expected to log in new orders soon helping the Indian Textile Engineering Industry rise like the proverbial phoenix bird.