The Confederation of Indian Textile Industry (CITI) is very thankful to the Reserve Bank of India (RBI) for announcing a cut in the repo rate by 25 basis points to 5.25 per cent and remains hopeful that this would translate into lower cost of borrowing and ease of capital availability for micro, small and medium enterprises (MSMEs) in the textile and apparel sector in future.

CITI thanked the RBI for cutting the repo rate to 5.25 per cent, saying it should ease borrowing and improve capital access for MSME-dominated textile and apparel firms.
Chairman Ashwin Chandran welcomed RBI’s 7.3 per cent GDP growth and softer inflation outlook.
He noted the sector remains hit by the US’ 50 per cent tariff, with exports there at about $11 billion.

“The latest cut in the repo rate is an extremely positive measure taken by the RBI to fast-track overall growth and development,” CITI chairman Ashwin Chandran said.

“Our expectation now would be that this would get reflected in lower cost of borrowing and banks easing access to capital for MSMEs in the textile and apparel sector, many of whom often face a challenge on this front,” Chandran added. Banks are often reluctant/slow to pass on rate cuts to customers.

Most companies in India’s textile and apparel sector, one of the largest job-generators in the country, are MSMEs.

Chandran said it was heartening to note that the RBI has projected real GDP growth for the financial year 2025-26 at 7.3 per cent. “The resilience shown thus far by the Indian economy to global headwinds is commendable and stands testimony to the inherent strength of our domestic economy,” he added.

The CITI chairman said the RBI forecast of an overall softening in inflation was also good news. The RBI has revised downward its projections for average headline inflation in 2025-26 and Q1 of 2026-27. The RBI has now said that both headline and core inflation are expected to be around the 4 per cent target during the first half of 2026-27.

India’s textile and apparel sector is among those hit hardest by the 50 per cent tariff imposed by the United States on Indian goods, effective August 27.

The US is the single-largest market for India’s textile and apparel items, with around 28 per cent of these Indian goods being sold in the world’s No. 1 economy. India’s textile and apparel exports to the US in the financial year 2024-25 stood at nearly $11 billion.

Fibre2Fashion News Desk (HU)

US cotton export sales slowed during the week ending October 30, reflecting a softer tone in global buying. Net Upland sales totalled 81,500 running bales (RB), each weighing 226.8 kg, down from 138,800 RB the previous week, marking a 41.3 per cent week-on-week decline. Activity also trailed the same week last year, when net sales reached 229,000 RB, underscoring mills’ continued cautious booking behaviour. A further 12,700 RB was recorded for the next marketing year, indicating limited forward commitments.

Vietnam remained the top buyer at 14,200 RB, followed by Turkiye (10,200 RB) and India (7,100 RB). Mexico, Bangladesh, Pakistan, Japan and Indonesia contributed smaller volumes. Minor cancellations—mainly from Vietnam and South Asia—reflected mills’ sensitivity to shifting yarn demand and pricing dynamics.

US cotton export sales weakened in the week ending October 30, with Upland bookings down 41 per cent to 81,500 RB amid cautious global demand.
Vietnam and Turkiye led purchases, while shipments held steady at 146,600 RB.
Outstanding commitments remain well below last year.
Pima sales were subdued at 7,900 RB. Mills favoured short-cycle buying.

Export shipments of Upland cotton remained steady at 146,600 RB, supported by earlier contract execution. The largest shipment destinations were Vietnam, Mexico, India, Bangladesh and Nicaragua. Outstanding Upland commitments stand at 3.144 million RB, compared with 4.295 million RB a year earlier, pointing to shorter booking windows and a shift towards near-term sourcing.

Pima cotton activity was subdued. Net sales reached 7,900 RB, well below last year’s 12,300 RB, while shipments totalled 8,200 RB. No forward sales were reported, reinforcing slower momentum in the long-staple segment as luxury and high-value textile demand remains patchy.

Overall sentiment remains cautious. Mills continue to prioritise short-cycle procurement amid uneven yarn demand, currency pressure and competitive offers from alternative origins. Vietnam and Turkiye maintained steady interest, while India, Pakistan and China stayed selective—balancing domestic supply conditions, pricing parity and import needs.

Looking ahead, the pace of new sales may depend on downstream apparel order visibility, retail consumption patterns and ICE futures movement. Until clearer demand signals emerge, a buy-as-needed approach appears likely to dominate purchasing strategies moving into November.

Fibre2Fashion News Desk (KUL)