Mumbai: Yarn production is likely to grow by 6.8 percent in 2012-13, mainly on account of rise in cotton yarn production, according to economic think tank CMIE.
"The total yarn production is expected to rise by 6.8 percent during the year against 5.9 percent estimated earlier," Centre for Monitoring Indian Economy (CMIE) said in its monthly report.
The cotton yarn output is expected to grow by 10 percent in 2012-13 and synthetic yarn production is likely to grow by three percent, it said.
Fabric production grew at a healthy pace for the fourth consecutive month ended July at 9.9 percent driven by rise in production of cotton and hosiery fabrics.
The cumulative cloth production increased by 14.3 percent during April-July.
"We expect the the total fabric output to grow by 7.1 percent against 5.7 percent estimated earlier. The growth is expected to be led by an 8.1 percent increase in the output of cotton fabric," CMIE said.
The country's apparel exports are estimated to fall by two percent in FY13 due to decline in volumes following weak global economic conditions, CMIE said.
Weak economic growth expected in the two largest export destination for the Indian apparel industry - Europe and the US, along with continued deterioration in the country's competitiveness in apparel exports compared to neighbouring countries is expected to impact the export volumes.
However, it said, during this period of sluggish demand manufacturers are exploring markets in the Middle East, Latin America and Africa.
Also, it further said, recently signed free trade agreement with Israel is expected to boost apparel exports going forward.
These factors will help in restricting the fall in exports volumes to 2.3 percent in 2012-13, it said.
First Published: Wednesday, October 24, 2012, 18:54