In the Mumbai market, cotton yarn prices remained steady after a recent marginal rise, with trading activity subdued amid slow demand and persistent payment issues. Current buying is largely aimed at supporting prices at existing levels rather than reflecting fresh demand. A Mumbai-based trader told Fibre*Fashion, “Local summer demand is just enough to keep the market afloat, while expectations of export-led demand following the US trade deal have yet to translate into orders. The market began to feel payment constraints ahead of the closing of the financial year on March **.”

In Mumbai, ** carded yarn of warp and weft varieties were traded at ****;*,***–*,*** (~$**.**–**.**) and ****;*,***–*,*** per * kg (~$**.**–**.**) (excluding GST), respectively. Other prices include ** combed warp at ****;***–*** (~$*.**–*.**) per kg, ** carded weft at ****;*,***–*,*** (~$**.**–**.**) per *.* kg, **/** carded warp at ****;***–*** (~$*.**–*.**) per kg, **/** carded warp at ****;***–*** (~$*.**–*.**) per kg and **/** combed warp at ****;***–*** (~$*.**–*.**) per kg, according to trade sources.

Strong domestic consumption, policy measures and a stable banking system would drive the growth, it noted in its banking system outlook report.

The FY27 GDP growth estimates by Moody’s are lower than the 6.8-7.2 per cent range projected by the Finance Ministry’s latest Economic Survey.

India’s GDP will grow at 6.4 per cent in FY27, the fastest pace among G-20 economies, Moody’s Ratings projected recently.
Strong domestic consumption, policy measures and a stable banking system would drive the growth, it noted in its banking system outlook report.
The operating environment for banks will remain strong in 2026, supported by robust macroeconomic conditions and structural reforms.

Moody’s asset quality will stay resilient, with some stress among micro, small and medium enterprises (MSMEs). Regardless, banks have sufficient reserves to absorb loan losses, it said.

The operating environment for banks will remain strong in 2026, supported by robust macroeconomic conditions and structural reforms, it said.

“The rationalisation of the goods and services tax (GST) in September 2025 and an earlier increase in personal income tax thresholds will help improve affordability for consumers and support consumption-led growth,” Moody’s said.

With inflation under control and growth momentum remaining strong, Moody’s anticipates the central bank will further ease monetary policy in FY27 only if there are signs of a slowdown in economic activity.

Moody’s expects system-wide loan growth to accelerate slightly to 11-13 per cent in FY27 from 10.6 per cent in FY26 year to date.

Banks will maintain strong capitalisation, backed by internal capital generation that keeps pace with asset growth. Their funding and liquidity will be stable, with loans growing in line with deposits, Moody’s added.

Fibre2Fashion (DS)