India's textile sector is projected to see significant growth in the latter half of FY25, driven by improving demand momentum and volume growth that is expected to surpass inventory levels. This optimistic outlook is supported by easing inflation, normalized channel inventory, and anticipated interest rate cuts. Global shifts in supply chain strategies, particularly the 'China +1' policy and ongoing political instability in Bangladesh, are prompting international brands to reconsider their reliance on Bangladesh and explore sourcing from India and other countries. Despite challenges such as export disruptions in the Red Sea region and rising domestic cotton prices, signs of recovery are evident in both domestic and export demand, particularly in the spinning industry. Financial performance indicators for textile companies in Q1 FY25 have shown strong year-on-year growth. Overall, the demand environment is expected to strengthen in the second half of the fiscal year, boding well for the Indian textile industry's recovery.