The weakening of US$ has been hitting Indian textiles exports significantly. Volumes are not increasing much while realization is getting hit. In February exports of yarns increased marginally from their January levels. A total of 50,540 tonnes of yarn was exported through the major ports in India, grossing US$149.84 million. This implies per day export of 1,742 tonnes as against 1,726 tonnes in January 2008. In January a total of 53,517 tonnes of yarn was exported realizing US$162.85 million. However, average price realization was down in February, implying low priced products leaving the ports. Bangladesh became the major buyer of Indian yarns in February overtaking Turkey. Total imports of Indian yarn into Bangladesh were 5,600 tonnes while Turkey's imports aggregated 4,500 tonnes. Egypt was the third largest importer with 2,575 tonnes followed by Brazil with 2,295 tonnes.

The 11th Quarterly Survey on the Business Confidence of Indian textile companies indicates a relatively more confident textile industry in the next three months. The situation has stabalised, following a set back on the exports side due to a strong rupee, as indicated by the last Business Confidence survey.

The Business Confidence Index which reflects the expectation of the textile industry in the current quarter showed some recovery. The Index stood at 72.09 for the quarter January-March, 2008 as against 70.19 in the last quarter. Among all the respondents 58% expected a better current quarter as compared to 48% in the last survey.