Economic Times4/23/2026BusinessIndia
Indian Cotton Yarn Factories Ramp Up Production as China Demand Surges
Middle East war disruptions and weaker rupee make India preferred sourcing point for Chinese textile industry
Quick Look
- Indian cotton yarn factories, particularly in Gujarat, are increasing production to meet unprecedented demand from China.
- The Middle East war has disrupted global trade routes, making India a preferred sourcing point.
- Combined with a 7% rupee depreciation against the yuan and tight global cotton supplies, Indian exports have jumped five-fold to 1,500 containers monthly since November.
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Indian cotton yarn factories, particularly in Gujarat, are increasing production to meet unprecedented demand from China. The Middle East war has disrupted global trade routes, making India a preferred sourcing point. Combined with a 7% rupee depreciation against the yuan and tight global cotton supplies, Indian exports have jumped five-fold to 1,500 containers monthly since November. Orders are booked through June.
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This article was originally published by Economic Times.
