India's textile sector faced a downturn in March 2023, with overall production decreasing by 3.6% year-on-year. Apparel production was particularly hard hit, dropping 14.6%. The decline is attributed to skyrocketing input costs, with cotton yarn prices rising by 20%, and significant increases in the costs of polymers, paper, and dyes. The ongoing conflict in Iran has exacerbated these issues, leading to logistics disruptions and heightened freight and insurance costs. The textile and apparel industry, which contributes 2.3% to India's GDP and 13% to industrial production, is experiencing a cautious outlook as stakeholders assess the impact of these challenges. Key segments such as polyester/viscose blended fabric and cotton-based goods also reported declines, with woven cotton fabric output falling 4.2% and knitted cotton fabrics down 4%. If the geopolitical situation persists, the sector may face further challenges from weakened domestic consumption and export demand.