Textile firms set to spin their way to recovery in 2022: A CRISIL analysis

Credit outlook largely stable for cotton yarn and readymade garments players

The domestic textile industry, which had seen demand slump in fiscal 2021 owing to onset of the Covid-19 pandemic, is firmly on course to recover in fiscal 2022 on the back of reopening of businesses, educational institutions and retail outlets with increase in the vaccinated population. Sanctions on Chinese textiles have boosted Indian textile exports as well. Government announcements such as the Production Linked Incentive scheme, setting up of mega textile parks, and extension of the Rebate of State and Central Taxes and Levies scheme are also supporting the sector. However, resurgence of Covid-19 infections will be a key monitorable.

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