Cotlook Index: 30-10-2026
90.20 (+0.35)
India's GDP growth estimated at 7.35% in Q2 FY27: Economic Review
Saturday, 31st Oct. 2026, (Source: www.fibre2fashion.com)
Insights: India's economic growth remained resilient in Q2 FY27, with GDP growth estimated at 7.35 per cent, supported by strong industrial activity, exports, investment and domestic demand, according to the October Economic Review. However, rising food and fuel inflation, global uncertainty and higher energy prices pose risks to growth and price stability in the coming months.
India’s growth momentum has held firm in Q2 FY27, with high-frequency indicators covering industrial output, energy consumption, port traffic, goods and services tax collections and automobile sales recording stronger growth than in the previous quarter, according to the October 2026 Monthly Economic Review released by the Department of Economic Affairs’ Economic Division. Building on growth of 7.8 per cent in Q1, the department’s nowcasting model estimated real gross domestic product growth at 7.35 per cent in Q2 FY27. Reflecting domestic trends, the International Monetary Fund raised its FY27 growth forecast for India to 7.0 per cent, while the World Bank, the Organisation for Economic Co-operation and Development and the Reserve Bank of India projected growth at 7.1 per cent, the review said.Industrial activity remained firm, with the Index of Industrial Production expanding by 8.0 per cent year-on-year in August 2026, led by 9.0 per cent growth in manufacturing. The Index of Core Industries grew by 7.9 per cent year-on-year in September 2026, while the HSBC India Manufacturing Purchasing Managers’ Index strengthened to 55.1 in September from 52.8 in August, indicating faster expansion in manufacturing activity, the review said. The latest Annual Survey of Industries 2024-25, for which fieldwork was carried out during October 2025–June 2026, pointed to broad-based expansion in the registered manufacturing sector. Gross value added rose by 9.59 per cent, fixed capital by 10.54 per cent and total persons engaged by 7.19 per cent over the previous year, according to the review. It said labour market indicators reflected a resilient job market, with stable monthly labour force participation and unemployment rates alongside steady white-collar hiring activity, and the ASI also reported an expansion in organised manufacturing employment. Bank credit to industry grew by 18.2 per cent year-on-year and remained strong across major industrial segments, the review said. It added that recent policy, investment and firm-level developments pointed to continued efforts to scale up manufacturing, localisation and technological capabilities, while increasing scale, domestic value addition, supply-chain depth and export competitiveness would remain important for broadening the manufacturing base. India’s external sector continued to show resilience in September 2026 amid heightened global uncertainty, with total exports of merchandise and services growing by 11 per cent year-on-year. Merchandise exports rose by 23.1 per cent year-on-year and were the main driver of export growth, led by electronics and engineering goods, according to the review. Supported by a steady services surplus, the overall trade deficit narrowed during the period. On a cumulative basis, however, the current account deficit widened during April-August FY27, though strong banking capital inflows kept the overall balance of payments in surplus. India’s external position was also supported by foreign exchange reserves, which stood at $721 billion as of October 16, 2026, the review said. Headline retail inflation, measured by the Consumer Price Index, accelerated by 71 basis points to 5.54 per cent in September 2026, driven by a rise in consumer food prices to 7.74 per cent and partial pass-through of global fuel price increases to the CPI basket. However, around 64 per cent of items in the CPI basket continued to record inflation well below the 4 per cent target, the review said. CPI inflation averaged 4.94 per cent in Q2 FY27, in line with the RBI’s forecast for the period. As inflationary pressures persisted, the RBI raised the repo rate by 25 basis points and changed its stance from neutral to calibrated tightening, the review said. India’s financial sector remained relatively insulated from rising global sovereign bond yields and volatile global equity markets during the period. Transmission through the money market was orderly, with market rates staying close to the policy repo rate and surplus liquidity calibrated through fully subscribed open market operation sales. Overall bank credit growth expanded by 21.6 per cent year-on-year. Globally, activity proved more resilient to the conflict in the Middle East than initially expected, although the inflation impact was larger. In April-June 2026, the first full quarter after the conflict began, flexible supply responses in energy markets, inventory drawdowns and strong investment in artificial intelligence helped cushion the energy shock, the review said. G20 GDP growth remained broadly stable at 3.1 per cent year-on-year, though growth across major economies was uneven. Growth in advanced economies was modest, with a slight improvement in Europe partly offset by slower growth in the United States. Higher energy prices renewed inflationary pressures and prompted monetary tightening in several major economies, while bond yields rose to multi-decade highs amid concerns over fiscal sustainability, higher government borrowing and inflation risks. Taking these developments into account, the IMF’s October 2026 World Economic Outlook projected global growth to slow to 3.1 per cent in 2026, with risks tilted to the downside, the review said. Overall, robust domestic demand, sustained investment activity, a resilient financial sector and proactive supply-side management have supported India’s growth resilience so far, the review said. It added that uncertainties remained considerable, and that amid elevated crude oil prices, higher food inflation and an uncertain outlook for the kharif crop, sustaining economic activity while safeguarding price stability would be the focus of policymakers in the second half of the financial year.
Menzel Engineering to showcase textile machinery at India ITME 2026
Monday, 2nd Nov. 2026, (Source: www.fibre2fashion.com)
Insights: Menzel Engineering India will showcase its modern textile wet processing and finishing machinery at India ITME 2026 in December. Backed by German parent Karl Menzel Maschinenfabrik Gmbh & Co.'s century-long engineering expertise, it will highlight precision, reliability and resource efficiency. Visitors can meet the team at Hall 1, Booth H1A8.
Menzel Engineering India Pvt Ltd is set to participate in India ITME 2026, scheduled for December 4-9, 2026 at IEML, Greater Noida, where it will showcase its range of textile wet processing & finishing machinery. Visitors can explore the company’s solutions at Hall 1, Booth H1A8. Backed by the engineering expertise of its German parent company, Karl Menzel Maschinenfabrik Gmbh & Co., the company aims to highlight machinery solutions designed to support precision, reliability and operational efficiency across textile manufacturing and processing applications. Peter Menzel, Promoter & Director, Menzel Engineering India Pvt Ltd, said, “India ITME 2026 provides an excellent platform for us to connect with textile manufacturers and showcase our machinery solutions. As the Indian textile industry continues to modernise, demand for reliable, efficient and technologically advanced equipment is increasing. Backed by Karl Menzel Maschinenfabrik Gmbh & Co.’s century-long engineering expertise, we remain committed to supporting manufacturers with solutions that enhance productivity, process efficiency and manufacturing quality.” Karl Menzel Maschinenfabrik Gmbh & Co. specialises in developing and manufacturing advanced equipment for the production and processing of web materials. Its expertise extends beyond textiles to films, nonwovens, paper and composites, as well as customised manufacturing systems for the medical and energy technology sectors. The company combines specialised engineering capabilities with a focus on quality, technological advancement and long-term customer relationships. With a history dating back to 1925, the family-run German company has built its reputation on engineering excellence, technological innovation and dependable machinery performance. Its long-term business philosophy emphasises continuous research and development, responsible manufacturing and resource conservation through technological progress. Operating from its headquarters in Bielefeld-Senne, Germany, and production facilities in Brackwede and Schloß Holte-Stukenbrock, Karl Menzel Maschinenfabrik Gmbh & Co. focuses on delivering high-quality, precision-engineered equipment to customers worldwide. Its machinery solutions are recognised for their advanced technology, reliability and ability to meet specialised industrial requirements. At India ITME 2026, Menzel Engineering India will present its capabilities across different stages of textile processing, from fabric handling & finishing applications. The participation will provide an opportunity for textile manufacturers, processors and industry professionals to engage with the company and explore machinery solutions suited to their production requirements. As the textile industry increasingly focuses on improving productivity, enhancing process consistency and adopting resource-efficient technologies, Menzel Engineering India’s participation will underline the importance of reliable machinery and specialised engineering in supporting modern textile manufacturing. Harish Mehta, Promoter & Managing Director, Menzel Engineering India Pvt Ltd, said, “At Menzel, our focus has always been on delivering machinery that combines precision engineering, operational reliability and long-term value. Our participation in India ITME 2026 reflects our commitment to strengthening customer relationships and understanding the evolving requirements of textile manufacturers. We look forward to engaging with industry professionals and exploring opportunities to support more efficient and resource-conscious textile processing.” The exhibition will also offer a platform for the company to strengthen its engagement with existing customers, connect with prospective business partners and explore opportunities in the Indian textile machinery market. Visitors can Experience excellence in engineering whilst visiting & meeting the Menzel Engineering India team at Hall 1, Booth H1A8, during India ITME 2026.
Ghodegaon Cotton Hits ₹9,000 per Quintal
Saturday, 31st Oct 2026, by Yash Chouhan, (Source: www.smartinfoindia.com)
Cotton Procurement Price Reaches ₹9,000 per Quintal in Ghodegaon, Maharashtra; Farmers Distressed by Low Yield Ghodegaon (Maharashtra): Cotton procurement has gained momentum in Ghodegaon, located in the Nevasa taluka of Maharashtra. Here, cotton is being purchased from farmers at prices reaching up to ₹9,000 per quintal. With Diwali approaching, farmers are arriving at the market to sell their produce. However, despite the favorable procurement price, low yields and rising cultivation costs have intensified the financial concerns of the farmers. This year, the cotton crop has been adversely affected by erratic rainfall and other unfavorable conditions. Farmers invested significantly in land preparation, sowing, seeds, fertilizers, pesticides, labor, and irrigation. Despite this, they have not achieved the expected output. Due to the low yield, the total income from cotton sales is likely to decline, making it a challenge for farmers to even recover their cultivation expenses.
Financial Distress Persists Despite Prices Reaching ₹9,000
While the procurement price of ₹9,000 per quintal in Ghodegaon has provided some relief, the low production means this price is insufficient to resolve all the farmers' financial challenges. During the Diwali season, farmers must cover expenses such as purchasing clothing for their families, procuring provisions, and meeting other festive needs—all while also having to repay loans taken for agricultural purposes.
Cotton from Ghodegaon Being Sent to Gujarat
Cotton procured from Ghodegaon and its surrounding areas is being transported to Gujarat, with large quantities currently being sent there. However, it is reported that the total local cotton production this year is significantly lower compared to the previous year.
Farmers Seek Financial Assistance from the Government
Farmers have urged the government to conduct a proper assessment of crop losses and the decline in production, and to provide timely financial assistance to eligible farmers. They emphasize that, given the low yields and escalating cultivation costs, higher market prices alone are not enough to provide adequate relief. They also need government assistance to overcome the economic crisis.
CCI Cotton Sales Reach 99.33 Lakh Bales
Monday, 2nd Nov. 2026, by Yash Chouhan, (Source: www.smartinfoindia.com)
State-wise CCI Cotton Sales Details – 2025-26 Season
The Cotton Corporation of India (CCI) kept its cotton candy prices unchanged during this week . CCI has sold approximately 99,33,500 cotton bales for the 2025-26 season. Sales are highly concentrated in a few major cotton-producing states, Maharashtra, Telangana and Gujarat emerging as the leading contributors.
Cotton Duty Relief to Boost Spinning Mills
Monday, 2nd Nov. 2026, by Yash Chouhan, (Source: www.smartinfoindia.com)
Relief for Spinning Mills: Exemption on Cotton Import Duty Expected to Improve Profit Margins
The Indian cotton textile industry—specifically spinning mills—has received a significant boost. The central government has extended the exemption on the 11% customs duty on raw cotton imports until December 31, 2026. This move is expected to help mills control raw material costs and sustain their profit margins. While India is the world’s second-largest cotton producer (after China), domestic production forecasts for the current season are not encouraging. According to the Southern India Mills’ Association (SIMA), cotton production for the 2026-27 season is projected at approximately 28 million (280 lakh) bales. Typically, production exceeds 30 million (300 lakh) bales, whereas the industry’s annual requirement stands at around 36 million (360 lakh) bales. Amid these weak production estimates, cotton prices have surged by nearly 33% compared to the previous year.
Rising Costs Pressure Export Competitiveness
There is growing concern that high cotton prices could undermine the competitiveness of Indian yarn, fabrics, and garments in international markets. This challenge arises at a time when India is actively seeking to expand trade opportunities in new markets, including the UK and the US. The Ministry of Textiles aims to grow the textile sector—from its current valuation of approximately $172 billion to $350 billion by 2030—by driving investments to expand production capacity. However, exports have not seen the anticipated growth over the past few years.
Potential for Improved Margins in Spinning Mills
Previous exemptions on cotton import duties have already benefited spinning mills and textile manufacturers. Market projections suggest that, in the second quarter of the 2027 fiscal year (Q2 FY2027), listed companies may see both revenue growth and an improvement in their EBITDA margins. EBITDA stands for earnings before interest, taxes, depreciation, and amortization.
Companies such as KPR Mills, Vardhman Textiles, Ambika Cotton, and Indo Count have recorded a 200–300 basis point increase in margins on a quarter-on-quarter basis. Increased festive demand and a rise in export orders are expected to lead to better capacity utilization for these mills. However, a domestic shortage of cotton and potential price hikes could limit these gains.
Zero import duty aids raw material availability. The duty exemption will allow mills to make procurement decisions by comparing the prices of domestic and imported cotton. According to SIMA, cotton accounts for approximately 70% of the cost of yarn production, 50% of fabric production, and 30–35% of the cost of finished garments. Therefore, the availability of high-quality cotton in sufficient quantities at competitive prices is essential. Uncertainty regarding cotton prices has impacted the momentum of spinning mill stocks. Moving forward, the profitability of these companies will depend on domestic and global demand, the availability of cotton, and the cost of raw materials.
Jammikunta Cotton Prices Reach ₹8,840
Monday, 2nd Nov. 2026, by Yash Chouhan, (Source: www.smartinfoindia.com)
Telangana: Large Influx of Farmers at Jammikunta Cotton Market; Prices Reach Up to ₹8,840 per Quintal
Jammikunta: The agricultural cotton market in Jammikunta, located in the Karimnagar district, witnessed a massive influx of farmers on Monday following a four-day holiday. Farmers arrived at the market with cotton transported in over 300 vehicles. The price of cotton in the market reached as high as ₹8,840 per quintal, surpassing the mandated Minimum Support Price (MSP) of ₹8,667 per quintal. The Cotton Corporation of India (CCI) had also decided to procure cotton; however, many farmers were hesitant to sell their produce to the agency. Farmers explained that they required immediate cash to cover expenses related to the festive season, which led them to prioritize selling their cotton in the open market.
The chairperson personally oversaw the procurement process and instructed buyers to offer fair prices to the farmers. He advised farmers not to bring cotton to the market immediately after harvesting; instead, they should ensure that the cotton is thoroughly dried and that its moisture content aligns with the prescribed standards. He further stated that the CCI would procure cotton that is well-dried and meets the specified quality standards, without any deductions or additional charges. This will help farmers avoid unnecessary complications during the procurement process.
Cotton Import Policy Worries Farmers
Monday, 2nd Nov. 2026, by Yash Chouhan, (Source: www.smartinfoindia.com)
Maharashtra: Cotton Import Policy Raises Farmers' Concerns; Fears of Pressure on Prices
Duty-free import period extended until December 31, 2026; hopes for better prices dampened amidst declining production and rising costs. In major cotton-producing states, including Maharashtra, crops have suffered damage due to natural disasters. Despite this, the central government has extended the period for duty-free cotton imports until December 31, 2026. This decision has heightened concerns among farmers, who fear that continued imports—even as domestic production declines—could exert downward pressure on cotton prices. Cotton production has been impacted this year in Maharashtra, Karnataka, Telangana, and Andhra Pradesh. Industry estimates suggest that domestic production for 2025-26 will be around 28 million (280 lakh) bales, while consumption is projected at approximately 36 million (360 lakh) bales. During the same period, cotton imports are expected to reach around 7.2 million (72 lakh) bales. These are industry projections, and actual figures may vary. Due to the decline in production, farmers had hoped for better prices; in some markets, cotton prices had already reached ₹10,000 per quintal. However, the extension of the duty-free import period is likely to limit any further rise in domestic market prices. The combination of lower yields and increasing production costs could negatively impact farmers' profit margins. The average cotton productivity in India is approximately 430–440 kg per hectare, compared to a global average of about 815 kg per hectare. Improving productivity will require the adoption of better seeds, agricultural research, and technologies tailored to local conditions. According to industry sources, cotton imports may remain limited to around 2.5 million (25 lakh) bales through December, influenced by factors such as international prices, import costs, and the weakening of the rupee. Nevertheless, the extension of the import window could increase pressure on the domestic market. Farmers demand that duty-free imports not be extended and that policies promoting domestic cotton production be adopted. The government should prioritize the interests of cotton producers alongside the needs of the industry.
