Cotlook Index: 28-08-2026
101.30 (3.00)
India's real GDP growth to slow to 6.6% in 2026: S&P Global Ratings
Monday 31st Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: S&P Global Ratings recently forecast that India's real GDP growth will slow slightly to 6.6 per cent in 2026 due to high energy prices and challenging agricultural conditions. Public investment and consumer momentum will underpin solid growth prospects in the next two to three years. The rural economy will be affected by lower rainfall from El Nino and volatile input costs driven by the Middle East war.
S&P Global Ratings recently forecast that India's real gross domestic product (GDP) growth will slow slightly to 6.6 per cent this year due to high energy prices and challenging agricultural conditions. This still compares favourably with emerging market peers amid a broad global slowdown. Public investment and consumer momentum will underpin solid growth prospects in the next two to three years in the country, it said. It expects policy continuity, which would support further economic reforms and fiscal consolidation. It also expects economic fundamentals in the country to remain sound and support robust growth over the next two to three years. While the union fiscal deficit may exceed its current budget target, it believes India remains committed to fiscal consolidation, even as it maintains its strong infrastructure drive. The rating agency recently affirmed its 'BBB' long-term and 'A-2' short-term sovereign credit ratings on India. The stable outlook on the long-term rating reflects its expectation that policy stability and high infrastructure investment will support India's growth prospects. The stable outlook reflects its view that continued policy stability and high infrastructure investment will support India's long-term growth prospects. That, along with stable fiscal and monetary policies that moderate the government's elevated debt and interest burden, will underpin the rating over the next 24 months. S&P Global Ratings may lower the ratings if it observes an erosion of political commitment to consolidate public finances. In addition, downward pressure could also come from India's economic growth slowing materially on a structural basis such that it undermines fiscal sustainability. It may, however, raise the ratings if fiscal deficits narrow meaningfully such that the net change in general government debt falls below 6 per cent of gross domestic product (GDP) on a structural basis. The protracted rise in public investment in infrastructure will lift economic growth dynamism that, combined with fiscal adjustments, would alleviate India's weak public finances. But India remains among the best performing economies in the world, the ratings agency said. The country’s rural economy will be affected by lower rainfall from El Nino and volatile input costs driven by the Middle East war. India's fiscal settings have been the weakest part of its sovereign ratings profile, S&P Global Ratings said in a release. With economic recovery now on track, the government can depict a more concrete—albeit gradual—path to fiscal consolidation.
IIP for India's textile manufacturing in Jul grows 3.9% to 135.5
Sunday 30th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: The growth rate of India's index of industrial production (IIP) for July was 6.7 per cent, quick official estimates show. For the manufacturing sector, it was 7.3 per cent in July.
The IIP for textile manufacturing in July grew by 3.9 per cent to 135.5, while the same for apparel manufacturing fell by 0.6 per cent to 95.9. The IIP for leather sector manufacturing in July grew by 0.8 per cent to 113.2.
The growth rate of India’s index of industrial production (IIP) for July 2026 was 6.7 per cent, according to quick estimates released by the Ministry of Statistics & Programme Implementation.
The rate was 7.3 per cent in June. The IIP growth rate of the manufacturing sector was 7.3 per cent in July. The quick estimate of IIP stood at 124.8 in July against 117 in the same month last year. The index for manufacturing was 127.4, a release from the ministry said. Within the manufacturing sector, 19 out of 23 industry groups recorded a positive growth in July compared to the same month last year. The indices stood at 115.9 for primary goods, 141.8 for capital goods, 130.9 for intermediate goods and 136.2 for infrastructure/construction goods in July 2026. The indices for consumer durables and consumer non-durables stood at 129.9 and 113.7 respectively.
The IIP for textile manufacturing in July grew by 3.9 per cent to 135.5, while the same for apparel manufacturing fell by 0.6 per cent to 95.9. The IIP for manufacturing of leather and related products in July grew by 0.8 per cent to 113.2.
Apparel exporters urge commerce minister Piyush Goyal to regulate cotton yarn exports
Saturday 29th Aug 2026, (Source: www.economictimes.indiatimes.com/industry/cons-products/garments-/-textiles)
Synopsis
Apparel exporters requested government intervention to regulate cotton yarn exports. Rising yarn prices are significantly hurting the industry's global competitiveness. Limited stock and increased demand from countries like Bangladesh and Vietnam contribute. Higher manufacturing costs affect opportunities in new free trade agreement markets. Value addition through finished garments offers greater economic benefits than raw materials.
New Delhi: Apparel exporters on Saturday urged Commerce Minister Piyush Goyal to consider steps to regulate cotton yarn exports to contain rising prices of the yarn as it is hurting competitiveness of the industry.Apparel Export Promotion Council (AEPC) Chairman A Sakthivel in a communication to the minister said rising prices of raw cotton and cotton yarn are increasing due to supply-side constraints.The limited stock availability with ginners and reduced arrivals have resulted in mills relying increasingly on CCI (Cotton Corporation of India) auctions. He said substantial quantity of cotton has moved from farmers to traders, contributing to hoarding and speculative practices in the market. "AEPC has urged the minister to consider suitable measures to regulate the export of cotton yarn, particularly 20s count and above, in view of the sharp increase in yarn prices and the growing pressure on the competitiveness of India's apparel export industry," Sakthivel said. Cotton yarn prices have increased around 60 per cent, from about Rs 250 per kg in early 2026 to around Rs 400 per kg currently, and it is increasing pressure on the apparel manufacturing value chain. Rising costs of other raw materials and fuel are also aggravating the situation, he said.The letter further highlights the increase in exports of Indian cotton and cotton yarn to apparel-producing countries such as Bangladesh and Vietnam, following restrictions by the US on the use of .The letter further highlights the increase in exports of Indian cotton and cotton yarn to apparel-producing countries such as Bangladesh and Vietnam, following restrictions by the US on the use of Chinese cotton under the Uyghur Forced Labor Prevention Act (UFLPA). "This has added to the pressure on raw material prices across the garment value chain," he said, adding that higher apparel manufacturing costs are affecting the competitiveness of Indian apparel exporters at a time when opportunities are expanding in international markets, particularly in new FTA markets, such as the UK and New Zealand. Sakthivel highlighted the substantially higher value realisation and employment potential associated with exports of finished garments compared with raw cotton and yarn.
The letter notes that raw cotton fetches about Rs 275 per kg, while cotton converted into yarn fetches around Rs 325 per kg. In comparison, a kilogram of garments, after value addition, can fetch between Rs 800 and Rs 1,200.
The rupee opened 10 paise weaker against the dollar at 95.48.
Thu. 31st Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
The rupee had closed at 95.38 per dollar on Friday, whereas today it opened at 95.48 per dollar, down by 10 paise.
Indian equity benchmarks opened with gains on Monday. The NSE Nifty 50 rose 0.6% to reach 24,038.40, while the BSE Sensex fell 0.5% (or 368 points) to 76,896.
China plans to further develop logistics network by 2030
Monday 31st Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: To further develop its logistics network by 2030, China is planning to improve connectivity and better support the real economy, according to a government plan. The plan aims at bringing total social logistics costs to 13.1 per cent of GDP by 2030—down by 0.8 pp from the end of 2025. This will help improve the efficiency and performance of the real economy and support smoother economic circulation.
To further develop its logistics network by 2030, China is planning to improve connectivity and better support the real economy, according to a plan released by the National Development and Reform Commission (NDRC) and the Ministry of Transport. The plan aims at bringing total social logistics costs to 13.1 per cent of gross domestic product (GDP) by 2030—down by 0.8 percentage point (pp) from the end of 2025. The plan outlines 17 key tasks in seven areas. These include advancing the development and connectivity of logistics hubs; enhancing the capacity of logistics corridors; addressing shortcomings in urban and rural logistics facilities; and promoting digitalisation, smart development and green transformation of logistics facilities and equipment.
This will help improve the efficiency and performance of the real economy and support smoother economic circulation and high-quality development, said the document. The country expects to make notable progress in developing its logistics network by 2030, with closer coordination between logistics hubs and industries, enhanced internal and external connectivity, greener and smarter facilities and equipment, and greater interoperability of rules and information, a state-controlled media outlet reported citing the plan document. The logistics network is one of the six networks prioritised during the country’s 15th Five-Year Plan period (2026-2030), alongside water networks, new-type power grids, computing power networks, next-generation communication networks and urban underground pipeline networks.
Higher LNG prices, supply shortages compound Bangladesh gas crisis
Friday 28th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: The deepening gas and electricity crises in Bangladesh have been compounded by a sharp rise in global LNG prices and supply shortages coinciding with high power demand. Industrial production has been severely hit, with 70 per cent of the production capacity of gas-dependent factories staying unutilised, pressuring the export sector. The energy crunch is no longer confined to power-intensive industries.
The deepening gas and electricity crises in Bangladesh have been compounded by a sharp rise in international liquefied natural gas (LNG) prices amid the Middle East conflict and supply shortages coinciding with high power demand. Disruptions in gas production and supply continue to affect power generation, industries, compressed natural gas (CNG) stations and households.
LNG prices have nearly doubled, while supplies have remained difficult to secure even after the government relaxed procurement rules and offered higher prices. Industrial production has been severely affected, with around 70 per cent of the production capacity of gas-dependent factories remaining unutilised, pressuring the export sector, according to a domestic media outlet. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) feels the gas supply situation has somewhat improved, but remains inadequate for industrial production. Production in the readymade garments (RMG) sector had fallen by 30-35 per cent because of insufficient gas supply, with backward-linkage industries suffering the most, it said. BGMEA has requested the government to resume heavy fuel oil-based power plants instead of relying on inefficient gas-fired power plants. It also called for diverting gas supplied to inefficient gas-fired power plants to industries to ease the shortage. Gas shortage is delaying industrial projects, raising manufacturing costs and creating risks across industrial, Dhaka Chamber of Commerce & Industry (DCCI) president Taskeen Ahmed told a recent seminar.The energy crunch is no longer confined to power-intensive industries, he cautioned.
