Fabric production, according to the Centre for Monitoring the Indian Economy (CMIE), is expected to a decline by 2.7 per cent during 1998-99. This is after a more or less consistent growth of around 9 per cent per annum during the 1990's.

The total production of fabrics through the various segments such as mills, handloom, powerloom and hosiery have registered a decline from 36,896 million sq mtrs in 1997-98 to 35,885 million sq mtrs in 1998-99. Except for the hosiery all other segments have shown a fall inproduction. Fabric exports is likely to be around Rs 4,700 crore as against Rs 4,144 crore in 1997-98.

In the yarn segment, spun yarn output registered a decline of 5 per cent from 2,973 million kg to 2,825 million kg in 1998-99. Blended spun yarn production rose from 583 million kg to 630 million kg while production of 100 per cent non cotton spun yarn increased from 177 million kg to 185 million kg. But cotton spun yarn output declined from 2,213 million kg to 2,010 million kg. Despite the decline in the production in all the months of 98-99, the prices of yarn has remained unchanged with cone yarns hovering around Rs 100 per kg.

Exports of yarn as well as cloth during the year period were estimated at $3.1 billion representing around 87 per cent of the overall target of $3.6 billion. While fabrics and made-ups showed a growth of 3.2 per cent, yarn and thread trailed behind by almost 10.7 per cent.