In Panipat, a major home textile production hub, there are indications of a drop of up to 40 percent in export orders. Inflation caused by the Russian-Ukrainian war and rising interest rates are believed to be responsible for the recession and lower export orders.

The global recession is knocking on the doors of the Indian textile industry. The impact of the recession is clearly visible in the new orders received by Indian exporters. Industry bodies and businesspeople said export orders for apparel and home textiles from the United States and Europe were down about 15-20%, Western retail brands facing slow demand.

Industry sources said that importers in Western countries not only reduced orders for the next season but also postponed deliveries of previous orders. Last month, importers from several home textile exporters refused to take delivery. Shoppers said retail sales in Western countries had slowed significantly due to high inflation. Warehouses are full of unsold goods. It is therefore not possible for them to take delivery immediately.

Panipat exporters, who returned after attending the trade fair held in Germany in June, said they received 40 percent fewer home textile export orders compared to a year ago.

Ramesh Verma, Panipat-based exporter and member of the Handloom Export Promotion Council told Fibre2Fashion“Major companies and retail brands in the United States and Europe had purchased home textile products in excessive volume last year. But retail sales remained very weak. So they must reduce their purchases. Exporters have less orders for next season.

Chairman of the Apparel Export Promotion Council, Narendra Goenka, previously said that garment export orders are expected to decline by around 15-20%. In fact, the current situation in the world remains uncertain. Foreign buyers are cautious about placing new orders.

Exporters are currently placing orders for Christmas and the upcoming summer season. An exporter from Tiruppur said the impact of the recession is clearly visible on export orders from the textile sector. In Western countries, consumers in general do not have enough money to buy textile products and other discretionary items due to inflation and unfavorable economic conditions.

However, some experts hope the situation will improve in the coming months. Overseas buyers have mostly placed orders for the upcoming Christmas in December. Buyers are importing winter items from other countries instead of India. Indian exporters are receiving more orders for the summer season. If the global economic situation improves, export orders could increase.

Fibre2Fashion Information Office (KUL)