Why Invest in Textile Stocks in India?

Top 10 Reasons to Invest in Textile Stocks and Companies in India.

Understand Why Invest in Textile Stocks in India? Here are Top 10 Reasons to Invest in Textile Stocks and Companies in India.

Indian Textile Industry

After disappointing 3 years (from 2019-2021), India’s Textile Exports has jumped from US$ 33 Billion in FY 2020-21 to US$44 Billion in 2021-22. Export of Ready-Made Garments has also seen a growth of over 31% in FY 2020-21.

Top Indian Garment Export Destinations are – USA (27%), EU (18%), Bangladesh (12%( and UAE (6%).

The Indian Government and the Indian Textile Industry have set Target of Textile and Apparel Exports to US$ 100 Billion by 2030 as compared of US$ 44 Billion in FY 2021-22.

This means that the Textile Exports from India have a High Cumulative Annual Growth Rate in the Next 6-8 Years.

Check:

• Top 10 Best Textile Stocks to Buy in India
• Best Performing Textile Stocks to Buy in India
• Top 10 Textile Companies in India by Market Cap

Why Invest in Textile Stocks in India?

Here are Top 10 Reasons to Invest in Textile Stocks and Companies in India.

1. Abundant Availability and Supply of Raw Material: Availability and supply of Raw Material for the Textile Industry is abundant in India. India is among the largest producers of Cotton, Jute, Wool, Silk, Synthetics, Polyester Fiber and other Artificial Fibers.
2. Competitive Manufacturing Cost: Textile Sector demands low manufacturing costs to compete in the Internal Market. India is competitively in low-cost manufacturing hub as compared to countries like China, Vietnam and Bangladesh. This includes wages of skilled and unskilled manpower, Cost of Land and Water, Low Power Cost.
3. Infrastructure: India has a long tradition of textile and apparel manufacturing. Textile manufacturing infrastructure spread across India.
4. “China Plus One” Strategy: This strategy of Western Countries strategy aims to cut down exclusive dependence of Chinese Supply Chain and to do business with more countries like India.
5. Lock Down: Unwanted Lock downs due to Pandemic in Countries like China have become too frequent.
6. Ban on China: US Bans of Imports from Xinjiang Province in China.
7. Shift from China to India: Textile and Garment companies from around the World are shifting towards Indian Textile Industry to fulfill their orders.
8. Textile Parks: In order to give Boom to Indian Textile Industry, the Indian Government is taking several steps such as setting up Textile Parks like MITRA (Mega Integrated Textile Region and Apparel).
9. PLI Scheme: Indian Government is seriously encouraging manufacturers and investors through PLI Scheme.
10. Large Domestic and International Market: The Indian domestic consumption of textile and apparel is valued at over US$ 100 Billion in 2022. The Indian Government and the Indian Textile Industry have set Target of Textile and Apparel Exports to US$ 100 Billion by 2030 as compared of US$ 44 Billion in FY 2021-22.

Check:

• Top 10 Textile Companies in India by Net Profit
• How to Pick Best Stocks to Buy in India
• Top 10 Textile Companies in India

FAQs: Textile Stocks and Industry

Conclusion

India is the second largest manufacturer of textile and apparel in the world. Indian textile and apparel Industry is estimated to grow sharply with about 70% domestic consumption 30% Exports.

Investors in Stock Market in India have Once in a Life Time Opportunity to Invest in Textile Stocks in India and Earn Good Profit.

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