Related Keywords: Cotton yarn manufacturers, fresh investment drying up, led to overcapacity, local fabric makers slow down purchases, new capacity addition, next five years due, rapid growth, sharp decline in exports to China, slowdown investment
Cotton yarn manufacturers to slowdown investment in new capacity addition in the next five years due to sharp decline in exports to China, as local fabric makers slow down purchases.
Between FY12 and FY16, the sector added 7.3 million tonnes of manufacturing capacity. By the end of FY16, the manufacturing capacity in the country was 50 million spindles. The rapid growth, however, led to overcapacity, with fresh investment drying up.
