India textile output drops in March as Iran war spikes shipping and raw material costs

Margins squeeze as freight costs surge after Iran disruptions

India’s textile production fell sharply in March, with readymade garments and cotton goods hit hardest. Higher prices for raw materials, packaging and chemicals squeezed manufacturers’ margins, while Iran-war related disruptions disrupted shipments and pushed freight costs up. The combined cost shock is forcing firms to scale back output, raising concerns about how long demand and profitability can hold.