Le Merite Exports Ltd Management Discussions

The global textile industry experienced a mixed recovery during the financial year, shaped by continued economic uncertainties, rising production costs, and evolving consumer behavior. While demand rebounded in some segments—particularly athleisure, home textiles, and technical textiles—others remained under pressure due to inventory overhangs, slower retail activity in certain regions, and geopolitical tensions affecting trade flows.

Sustainability, digitization, and nearshoring trends gained momentum, prompting

textile manufacturers to invest in innovation, eco-friendly production, and digital supply chains. Emerging markets, including South and Southeast Asia, continued to consolidate their position as global textile hubs due to cost competitiveness and supply chain resilience.

India continued to stand out as one of the fastest-growing major economies in CY 2024, with strong growth in manufacturing, services, and exports. The countrys GDP growth was supported by increased public infrastructure spending and private consumption. The governments emphasis on self-reliance ("Aatmanirbhar Bharat") and export-led growth has positioned India favourably in the global market.

For FY 2024-25, the Indian economy is expected to maintain its growth momentum, driven by domestic demand and the expansion of sectors such as textiles, electronics, and pharmaceuticals. The governments ongoing reforms and incentives for industries, including the setup of textile parks and the production-linked incentive (PLI) schemes, are expected to further enhance Indias manufacturing competitiveness

With improved business accessibility, the investment climate is becoming increasingly favourable. Rising consumer confidence, a progressing labour market, and increasing private consumption are encouraging the government to further enhance capital investment and reduce the budget deficit.

The global textile and apparel industry is a cornerstone of the manufacturing sector, valued at approximately USD 1.2-1.5 trillion in 2024. It encompasses a vast range of activities

from fiber production and yarn spinning to fabric manufacturing, garment production, and technical textiles. The industry plays a significant role in employment and exports, particularly in emerging economies such as China, India, Bangladesh, Vietnam, and Turkey.

In FY 2024-25, the industry witnessed a mixed recovery following post-pandemic stabilization, amid persistent macroeconomic and geopolitical headwinds. Global demand patterns were influenced by shifting consumer priorities, inflationary pressures, inventory adjustments by major retailers, and ongoing supply chain recalibration.

Indias textile and apparel industry, one of the oldest and most significant sectors in the country, continues to be a key pillar of the economy. It contributes approximately 2.5% to the national GDP, accounts for around 12% of total exports, and provides direct employment to over 45 million people. Despite global uncertainties and domestic inflationary pressures, the Indian textile industry showed resilience during FY 2024-25.

With a value of over USD 165 billion, the Indian textile market is poised for growth, driven by government support, rising domestic demand, export recovery, and a growing preference for sustainable and value-added textiles.