New Delhi, June 16 -- The textile and apparel sector is cautiously welcoming the US-Iran peace agreement, with industry executives saying the deal could ease supply chain disruptions and lower input costs that have squeezed margins for months, though they warned against expecting an immediate recovery.

The deal raises hopes of restoring trade flows through the Strait of Hormuz, a critical route for crude oil, petrochemicals and industrial raw materials that feed India's synthetic textile sector. The prices of several key inputs rose as much as 25% during the conflict, while sulphuric acid, important for dyeing work, doubled to around Rs.25 per kg.

The Confederation of Indian Textile Industry (CITI) said the deal could help ease geopolit...