According to an industry official, the textile and clothing sector is showing positive signs of recovery and is expected to yield more profits in export and domestic markets this year.
Sanjay K. Jain, chairman, Confederation of Indian Textile Industry (CITI) said, “The sector, which saw a major hit due to demonetisation, implementation of GST, rupee appreciation, and high domestic cotton prices, is finally showing some signs of recovery.”
Mr. Jain quoted few points from the RBI Financial stability report June 2018, that laid emphasis on the advance ratio of the textile sub sector which improved in March compared to the previous year. In September 2017 it was 23.7% which came down to 22.3% in March 2018.
Overall size of the industry is about $120 billion. Out of which, $37 billion is from exports. After GST, there was some slip down in the textile sector due to various reasons. He said, ““Now, aggregate demand in the domestic market has improved. With dollar strengthening, exports will also increase. In April-May this year, yarn exports went up. This trend will be seen soon in fabrics and garments too.”
Exports had stayed flat in the past four years. The Indian Government is working for the upliftment of drawback rates and ROSL and announcements would be made shortly.