Mumbai: The textile sector has finally started showing some signs of recovery after a challenging period of demonetisation, the implementation of the goods and services tax (GST) and appreciation of rupee, coupled with high cotton prices.Mumbai: The textile sector has finally started showing some signs of recovery after a challenging period of demonetisation, the implementation of the goods and services tax (GST) and appreciation of rupee, coupled with high cotton prices.
The Confederation of Indian Textile Industry (CITI) said stressed advance ratio of the textile sub-sector had improved in March from the levels in September. The Confederation of Indian Textile Industry (CITI) said that the recovery was expected, owing to rupee depreciation, pick-up of domestic demand and progressive policies of the government. The Government’s incentives, including `1,300-crore Samarth Scheme for skilling, `6,000-crore package for the apparel and made-ups, along with various state sops, are expected to turn around textiles & clothing sector and put it back on growth path. The government had also been receptive in resolving many GST issues, though there were still a number of glitches which the industry was hopeful to find a solution shortly. In FY18, textiles and apparel imports have touched $7 billion, 16% higher than the previous financial year’s value of $6 billion. All the categories across the value chain have seen a drastic rise in imports. For example, fabric imports grew 27% in FY18 to `2,336 crore, against `1,834 crore in FY17.
The apparel imports grew 30% to `773 crore as compared to `595 crore in the FY17. The biggest game changer that could transform the industry and put it at par with its competitors, such as Vietnam and Bangladesh, is Free Trade Agreement (FTA) with the European Union, Australia, Canada and Britain for made-ups and garments, and reduction of import duty on Indian cotton yarn and fabric by China.
The industry is optimistic that the government would intervene in the matter and continue to support.