Industry sources said the agreement could pave the way for the easing of US restrictions on Iran, potentially increasing global crude oil supplies. Higher availability of crude is expected to moderate prices, offering relief across the polyester value chain by reducing costs for key raw materials and synthetic fibres.
India’s textile and apparel industry expects the proposed US-Iran deal to ease trade and supply-chain pressures by improving shipping through the Strait of Hormuz and supporting lower crude oil prices.
Industry stakeholders believe the agreement could reduce raw material and energy costs, strengthen export competitiveness and create a more stable environment for global textile trade.
The deal is also expected to restore normal shipping operations in the region. Trade through key maritime routes, including the Strait of Hormuz, could become more predictable, helping reduce logistics disruptions, improve transit times and lower freight-related uncertainties.
The Confederation of Indian Textile Industry (CITI) said the agreement, once formally signed, could ease the geopolitical and economic uncertainties that have disrupted trade and energy markets over the past three months. The conflict had affected the smooth movement of goods through the Strait of Hormuz, creating challenges for global shipping, trade flows and energy security.
CITI Chairman Ashwin Chandran said the development would be a major boost for India’s textile and apparel sector, which has faced pressure from disruptions in raw material supplies, supply chains and industrial energy costs. He noted that the predominantly MSME-driven industry operates on thin margins and is particularly vulnerable to prolonged external shocks.
Market participants believe that the return of stability in West Asia would support global trade flows and economic activity, creating a more favourable environment for textile manufacturers and exporters. Improved access to raw materials and more stable transportation networks are likely to strengthen the competitiveness of India’s textile and apparel sector in international markets.
Industry observers said the development could provide a positive stimulus to the sector at a time when exporters are navigating volatile input costs and global demand challenges.
Fibre2Fashion News Desk (KUL)
