The textile industry of India contributes a whopping 12% to the nation’s
forex earnings! However, the economic slowdown in the global market has had its
adverse effects on the Indian Textile Industry, in addition to the various
other verticals. While the overall textile and garment exports of the country
rose by almost 4% in the current financial year, but it has still fallen short
of the $45 billion target, pertaining to the massive decline in
China’s demand with respect to cotton and yarn.
At present, the
spinning mills have up to 10% material in excess capacity thereby resulting in
higher inventory overheads and lower liquidity. The higher tariffs that have
been imposed on products of these mills in all the major international markets,
has further aggravated the issue.
