India, which has traditionally been a textile powerhouse, is at an inflexion point to regain its lost glory after some recent market share loss, said Emkay Global Financial Services as it initiated coverage on the textile sector with a 'Buy' call on the shares of Arvind, Nitin Spinners and Sanathan Textiles.
In its report, Emkay Global said India has lost market share in the global apparel trade, which has been stagnant at 3-4% over the past 15 years. However, it believes that the sector may soon see a turnaround led by a strengthening domestic MMF ecosystem, free trade agreements (FTA) with major economies, 7-8% US tariff gap compared to China, favourable regulatory taxes, robust corporate balance sheets and the fastest-growing domestic apparel market.
