India cotton yarn industry is heading toward a promising growth phase, with revenue expected to rise by 7 to 9 percent in the ongoing fiscal year. Crisil Ratings has highlighted this upward trend, driven mainly by the revival in international orders, particularly from China, along with firm domestic requirement from key textile segments.

This growth comes after a muted performance in the previous fiscal, where revenue increased by only 2 to 4 percent. Now, with renewed export traction and consistent offtake within the country, the sector shows signs of stable and sustained recovery.

A detailed review covering 70 spinning companies, which contribute nearly 35 to 40 percent of the sector revenue, supports this forecast. These players have reported visible improvement in overseas demand, especially from China, a vital market for cotton yarn output. At the same time, domestic demand remains encouraging due to steady production by apparel and home textile units.

Stable cotton availability and steady input costs are expected to support healthy operating margins. Profitability is likely to see a lift, leading to strong balance sheets. This positive outlook may also trigger new capital investments, although only selected players are likely to take up capacity expansion during this fiscal.

Credit profiles across the sector are expected to remain firm, backed by controlled debt exposure and improved cash flow. Export-oriented units focusing on premium yarn and efficient delivery models may benefit the most from this momentum.

With a balance between global revival and strong local support, the cotton yarn sector of India is moving confidently into a new phase. This phase not only strengthens its position in the textile value chain but also holds promise for deeper global linkages and long-term sustainability.