Indian textile industry may be more impacted by Red Sea disturbanceAn unrelenting disruption in the Red Sea could significantly affect India’s foreign trade, according to India Ratings and Research (Ind-Ra), which recently noted that the working capital cycle of companies is likely to aggravate by 15-20 days, and the impact could be stronger for sectors like agriculture and textiles.
The impact is likely to raise the share of freight and forwarding (F&F) cost in the total cost by 25-30 percent for companies involved in international trade, it said in a note.