Textiles stocks: Key triggers set the stage for growth in these two companies
Subscribe to enjoy similar stories. The Indian textile industry plays a pivotal role in the nation’s economy. The sector contributes 2.3% to India’s GDP and generates 10.5% of export revenue, according to India Brand Equity Foundation.
Globally, India ranks third in textile exports, holding a 5.4% market share, and boasts the second-largest manufacturing capacity worldwide. Primarily unorganized, the industry comprises micro, small, and medium enterprises, which account for 80% of its capacity. Global market dynamics significantly influence the sector, and its reliance on raw materials like cotton makes it highly cyclical.
Read this | What’s behind the sudden 100% surge in this financial stock? Is there more to come? Textile minister Giriraj Singh has ambitious plans for the sector, aiming to raise its value to $350 billion by 2030 and create 35 million jobs. However, in the short term, the industry has faced challenges. Over the past two years, subdued demand and rising costs have led to a downturn, with textile stocks underperforming even as the broader market delivered record returns.
Recently, however, the sector has shown signs of recovery. We explore the reasons behind the slowdown, its impact on stocks, and two promising companies to watch in 2025. Russia-Ukraine war: The global economy was relatively stable until 2021, but the Russia-Ukraine conflict in early 2022 disrupted this equilibrium.
The invasion severely impacted Ukraine and sent shockwaves across the global economy, particularly in the European Union (EU), as energy prices surged to record highs. Higher inflation: Inflation soared globally, hitting the EU hardest due to its reliance on Russian gas. Central banks worldwide responded by raising interest
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