Textile sector on revival path: CITI

Source: https://www.financialexpress.com

The stressed advance ratio of the textile sub-sector has been improving continuously. As per Reserve Bank of India (RBI)’s financial stability report, the ratio has improved from 23.70% in September 2017 to 18.70% in September 2018.

Based on quick estimates data, the export of textiles and apparels stood higher at Rs 18,965 crore in November 2018, against Rs 16,707 crore in November 2017, registering a 14% growth, said Confederation of Indian Textile Industry (CITI) on Tuesday. Over the same period, apparel exports have grown at a remarkable 21%, it added.

Sanjay Jain, chairman, CITI, said it was interesting to note the positive Index of Industrial Production (IIP) data. It is pertinent to mention here that the IIP data for textile & clothing (T&C) also witnessed robust year-on-year growth during October 2018 versus October 2017. Textiles and apparel have registered a growth of 6.2% and 28%, respectively, during October 2018.

The positive trend in the entire textile value chain has been the result of pragmatic approach shown by the Union finance and commerce ministries over the past few years. The Centre’s support to the sector includes disbursement of Rs 1,300 crore for the Samarth Scheme, Rs 6,000 crore for apparel & made-ups package along with various state incentives; resolution of goods and services tax (GST)-related issues and increase in import duty on various textile and apparel commodities. Made-ups are articles manufactured or stitched from any type of cloth, other than a garment such as bed-sheets, cushion covers and lamp-shades.

The timely policy support and intervention should be considered as an important step when the industry was under severe stress, especially after the implementation of GST, Jain pointed out.

Categories: Apparel, Asia, Business, India, Textile

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