Indian textile makers face margin pressure from wage hikes and raw material costs

Indian textile manufacturers are contending with mounting pressure on profit margins as labour costs rise and prices for key raw materials including cotton, yarn and petrochemicals climb higher.

The combination of wage increases and raw material inflation is forcing textile makers to absorb costs rather than pass them on to buyers. Many producers are reconsidering expansion plans in light of the challenging operating environment.

The sector faces a difficult balancing act between maintaining competitiveness and managing the squeeze on profitability amid persistent inflationary pressures.