India’s textiles and leather industries are among the worst hit sectors as per the Index of Industrial production (IIP) for August 2022, media reported.
The index of manufacture of textiles, wearing apparel and leather and related products recorded a double digit hit in the period under review. The data confirms what the textile value chain has been facing in the last couple of months.
Analysis of the IIP data revealed that the manufacture of textiles index fell to 105.5 in August 2022 from 120.2 in August 2021.
The cumulative index also came down from 113.8 to 109.3. The industry has recorded negative growth of 12.2% in August and 4% in April-August 2022.
The apparel index slipped by 18.3% to 117.7 in August 2022 from 144.1 in the corresponding period of last year.
However, the cumulative index managed to register a growth of 26.6% to reach 136.2 from 107.6 of August 2021.
The index of leather and leather products fell by 15% to 90.5 from 106.5 in the same month of last year. Cumulative index grew 1.7% to 98.3% from 96.7% in August 2021.
IIP confirms the sluggish demand and pressure of prices on the textile value chain. Earlier, the Indian textile industry had faced a shortage of cotton and sky-rocketing prices.
However, the demand was better than today, as per industry experts. Currently, low demand from domestic as well as international markets is a critical challenge for the sector.