New Delhi, Feb. 19 -- Despite domestic cotton prices remaining higher than international prices, the Indian textile sector is witnessing an improvement in demand, according to a recent report by Systematix Institutional Equities Research.

The report highlights key global and domestic factors that are shaping the industry's outlook.

The demand scenario appears strong, driven by multiple factors, including normalising inventories at global retailers, a potential tariff hike by the US on Chinese imports, rising labour costs in Vietnam, and ongoing political instability in Bangladesh. These factors position Indian textile manufacturers favourably in the global market.

However, the report raises concerns about the capacity constraints of In...