Textile Industry in India continues to be dominated by cotton, accounting for nearly 3/4th of the

total fiber consumption in the country. Manmade fibers dominate global fiber usage, accounting
for 70% of total consumption. Contrary to worldwide trends, India's fiber consumption is tilted
towards natural fibers, with cotton accounting for roughly 65 percent of total consumption.

The global textile trade was valued at $1300 billion. China continued to lose market share, but
India has definitely missed the bus, with Bangladesh and Vietnam capturing the majority of the
increases — clearly the second and third largest exports after China, respectively. Bangladesh
has clearly taken over 6% of global garment exports, while Indian exports have declined for the
second year in a row.

Other than cotton yarn exports, most other categories – especially Indian apparel exports are
clearly seeing de-growth. The early part of the year, the competitiveness was hampered by a
strong rupee.

In 2019, India's textile industry was valued at $150 billion US dollars. India's textile industry is
one of the world's largest, with a significant raw material base and manufacturing capacity. The
mill sector is the world's second largest, with 3400 textile mills with a total installed capacity of
more than 50 million spindles and 842000 rotors.
The textile sector accounts for 7% of total industry output in value terms, 2% of India's GDP,
and 15% of the country's export revenues. The textile industry employs about 45 million people
directly, making it one of the country's most important sources of employment.

After China, India's textile sector is the world's second largest exporter. In 2018, textile and
garment exports accounted for 12.4% of India's total exports. India accounts for about 5% of
global textile and garment trade.

India's top textile and clothing export destinations are the European Union and the United States,
accounting for 47 percent of total textile and apparel exports. It directly employs 4.5 crore people
and indirectly employs another 6 crore in affiliated industries.
The import of textiles & apparel Products in India stood at US$ 6.3 Billion during FY 2019.
India enjoys a trade surplus in this sector.

Textile Technology
Textile materials and products that are used for their technical performance and functional
features are known as technical textiles. In India, technical textiles have a lot of potential,
especially in the sun-rice sector. India produces around 90,000 MT of technical textiles,
accounting for 3% of global technical textile production. India is responsible for 4% of
worldwide technical textile exports and 3% of global imports. In the year 2018, India's technical
textiles sector was valued at Rs 1,16,217 crore. With a CAGR of 20%, the domestic market is
expected to reach Rs.2,00,823 crore by 2021.

Cotton Raw Material

Cotton is one of the most significant cash crops, accounting for about a quarter of worldwide
fibre production. Cotton accounts for roughly 59 percent of the Indian textile industry's raw
material consumption basket. Cotton is consumed in excess of 300 lakh bales (170 kg apiece)
each year. India is first in the world in terms of cotton acreage, with over 105 lakh hectares under
cultivation, or around 35% of the world's total area. The productivity of India was 540.80 kg/ha.
With 345 lakh bales produced, India has surpassed China as the world's greatest cotton producer.

In 2018-19, the area under cotton cultivation in India remained nearly unchanged from the
previous season, at 122 lakh hectares. In 2018-19, India is expected to produce 330 +/- lakh 170
kg bales of cotton.

The entire supply of cotton in 2018-19, including carryover inventories from the previous year
and current-year imports, is expected to be 395 lakh bales, down from 410 lakh bales in 2017-18.
Due to a lack of supply this year, prices in India have remained stable compared to other cotton-
producing countries.
Given the pricing gap between India and the rest of the globe, India is expected to import
roughly 30 lakh bales of cotton, which, if realised, will be the country's largest volume of
imported cotton.TEXTILE INDUSTRY CAN HELP COUNTRIES RECOVER FROM
COVID-19
The textiles and apparel sector has the ability to offer jobs and drive further growth in countries
recovering from COVID-19.
To make the most of this potential, countries will need to adopt new alliances and methods.
The COVID-19 pandemic is a once-in-a-generation public health disaster that has wrecked
devastation on the global economy. Despite the slump, the textile and garment industry in
numerous nations may continue to be a major source of employment and growth.

The textile and apparel opportunity

Since the textile and garment industry is considered a precursor to industrialisation, countries
rebuilding after COVID-19 should not disregard it. As the sector expands, it lays the groundwork
for more technologically demanding industries to emerge. In fact, the textiles and clothing sector
is critical to many developing countries' growth and development ambitions.
Textile and apparel exports account for a significant portion of total exports in a number of
nations, including Bangladesh (85%), Pakistan (59%), Turkey (12%), and Egypt (11%). Despite
the fact that many nations are well-positioned in the textile and apparel global value chain
(GVC) in terms of raw materials or production, they only play a minor role in the absence of
retail (comprised of marketing, branding and sales). As a result, they have potential that has to be
awakened in order to reap greater benefits from global markets.

Furthermore, because to the high number of job openings it may provide during a pandemic, the
textile industry presents a unique opportunity. Millions of people work in this labor-intensive
sector, which accounts for a considerable portion of the total manufacturing workforce in Islamic
Development Bank (IsDB) member countries.
Given that the IsDB's 57 member countries account for almost a quarter of the world's
population, they would reap enormous benefits. With annual GDP growth rates of up to 8%, their
economies have great potential to enhance their market share in the global economy.

Strategic investments
Those that invest in the textile and garment sector may receive a big return on their investment.
Sustainable and recycled fibres, for example, have the potential to increasingly replace resource-
intensive raw materials. In addition to automotive, construction, and medical equipment,
technical, smart textiles have a lot of potential in a range of industries.

Emerging technology will continue to revolutionise the textile and garment sectors, as it has
already done. Laser-cutting machines, sewing robots, and nanotechnology are just a few of the
technologies that are enhancing product design processes and lowering lead times, resulting in
data applications, artificial intelligence (AI) and machine learning, and 3D printing. COVID-19
has also proved the importance of blockchain technology in enabling transparency and
traceability throughout the supply chain, which has opened up new opportunities for the industry.
COVID-19 could also support a shift to nearshoring, which brings production closer to its
customers. Major corporations will seek strategic alliances with first-tier suppliers in order to
meet demand and reduce lead times. The ability of a country's textile and clothing industry to
provide cost-effective production, competitive skills, high-quality products, and short lead times
will determine the future market structure in significant part.

According to Boston Consulting Group, the global textiles and apparel industry market was
worth $1.9 trillion in retail in 2019, and is predicted to expand at a compound annual growth rate
of 3.5 percent to $3.3 trillion in 2030. Population growth, increased disposable income, and rapid
urbanisation in developing countries were predicted to fuel demand in the future.
 Figure 1 Top 20 exporting countries of fashion goods

IMPACT OF COVID-19 PANDEMIC ON TEXTILE INDUSTRY

The textile industry is a highly unorganized industry. The government has taken particular
measures to help alleviate the effects of the Covid epidemic on the textile industry, as well as to
improve production, marketing, and job possibilities in the sector. To determine the severity of
the situation, the government undertook a research titled "Impact of Covid-19 epidemic on
Indian Silk Industry." Production issues, cocoon and raw silk costs, transportation issues, a
shortage of experienced personnel, the selling of raw silk and silk products, working capital and
cash flow, limited export/import orders, and other constraints have all plagued the sector. The
chart below illustrates the last three months' orders and supply, which indicates a falling trend in
jute output during the peak of Covid-19, but which is currently significantly improving.

Table 1 Trend in jute production during the peak Covid-19 period

Month Order Supply by Mills
June 2020 2.75 bales 1.78 bales
July 2020 3.59 bales 2.48 bales
August 2020 3.52 bales 2.32 bales

The government held a symposium with textile Export Promotion Councils and other industry
stakeholders to finalize a list of possible export items to boost textile and apparel exports. The
list of possible export products was shared with the Indian Mission in other countries in order to
identify potential buyers in those nations. The Government has decided to continue the RoSCTL
(Rebate of State and Central Taxes and Levies) scheme until it is merged with the Remission of
Duties and Taxes on Exported Products (RoDTEP) scheme in order to make the textile sector
competitive in the international market by rebating all taxes/levies. The Government has
approved an adhoc allocation of Rs. 7398 crore for the issue of duty credit scrips under the
RoSCTL programme for FY 2020-21. Furthermore, the government has abolished anti-dumping
duties on PTA (Purified Terephtallic Acid), a major raw material for the manufacture of MMF
fibre and yarn, in order to encourage exports in the MMF sector. To alleviate the impact of the
COVID-19 pandemic on commerce, this Ministry has highlighted numerous trade facilitation
issues raised by industry stakeholders with the respective Ministries on a regular basis for prompt
resolution.

During the COVID pandemic, the Ministry of Textiles put in place a specific measure to help
beneficiaries of the Amended Technology Upgradation Funds (ATUFS). Applicants who have
had their machinery physically examined by the Joint Inspection Team (JIT) have been given the
opportunity to have their subsidies released on the submission of a bank guarantee under this
procedure. The regular budget allocation under ATUFS is used to fund the early release of
subsidy against bank guarantee.

The Indian government has also proposed Aatma Nirbhar Bharat Abhiyaan, a special economic
package aimed at improving the country's economy and making it self-sufficient. For several
industries, relief and credit support measures have been announced. Weavers and artists can take
use of these relief and credit support measures to resurrect their companies, which have suffered
as a result of the Covid-19 pandemic-induced lockdown.
Apart from the aforementioned special economic package, the Ministry of Textiles has taken the
following steps to help handloom weavers and craftsmen across the country:
i. In order to support the handloom and handicraft sectors, as well as provide a larger
market for handloom weavers/artisans/producers, steps have been taken to onboard
weavers/artisans on the Government e-Marketplace (GeM), allowing them to sell their
products directly to various Government Departments and organizations.
 ii. To encourage the e-marketing of handloom items, a policy framework was created under
which any interested e-commerce platform with a strong track record might participate in
online marketing of handloom products. As a result, 23 e-commerce companies have
been hired to advertise handloom products online.
iii. On the 6th National Handloom Day, the Government, in collaboration with all
stakeholders, launched a social media campaign #Vocal4Handmade to showcase India's
handloom heritage and assure public support for the weaving community. According to
reports, the social media campaign sparked revived interest in handlooms among Indians,
and some e-commerce companies reported increased sales of Indian handloom products.
iv. The Ministry of Textiles has requested that all Chief Ministers of States and UTs instruct
their State Handloom Corporations/Cooperatives/Agencies to make purchases of the
finished inventory available with the handloom weavers/artisans so that the
weavers/artisans have some ready cash to meet their household needs.
v. In the face of the unprecedented Covid-19 pandemic, traditional marketing activities such
as exhibits, melas, and so on are no longer practicable. To address this situation, the
government is working to empower our weavers and handloom producers with internet
marketing alternatives.
vi. Handloom Export Promotion Council has attempted to virtually connect handloom
weavers and exporters from various parts of the country with the International Market in
order to realise our Hon'ble Prime Minister's vision of "Aatma Nirbhar Bharat."
vii. THE INDIAN TEXTILE SOURCING FAIR was held on August 7, 10, and 11th, 2020,
with over 200 participants from various parts of the country displaying their products
with unique designs and talents. International buyers have been paying close attention to
the show.
viii. NIFT is establishing Design Resource Centres in Weavers Service Centres (WSCs) with
the goal of fostering design-oriented excellence in the Handloom Sector and assisting
weavers, exporters, manufacturers, and designers in developing new designs.
ix. Apart from the aforementioned measures, the Ministry of Textiles is executing numerous
plans for the general development of handlooms and the welfare of handloom weavers
across the country through the Offices of Development Commissioner (Handlooms).The
Scheme details are as under: -
  National Handloom Development Programme (NHDP)
 Comprehensive Handloom Cluster Development Scheme (CHCDS)
 Handloom Weavers’ Comprehensive Welfare Scheme (HWCWS)
 Yarn Supply Scheme (YSS)

Raw materials, looms and accessories, design innovation, product diversification, infrastructure
development, skill upgradation, lighting units, marketing of handloom items, and lending at
concessional rates are all covered by the aforesaid initiatives.

REVIVAL OF TEXTILE INDUSTRY AFTER COVID

The global pandemic of Covid-19 affected various industrial sectors in the country including the
textile sector. The government has taken following initiatives/ measures to help ameliorate the
conditions in textile sector to boost production, marketing and job opportunities in the sector on
pan-India:
i. In order to keep the textile sector competitive in the international market by rebating all
taxes/levies, the government has decided to keep the RoSCTL (Rebate of State and
Central Taxes and Levies) scheme going until it is merged with the RoDTEP (Remission
of Duties and Taxes on Exported Products) scheme. The Government has approved an
adhoc allocation of Rs. 7398 crore for the issue of duty credit scrips under the RoSCTL
programme for FY 2020-21.
ii. Additionally, in order to increase exports in the MMF sector, the government has
eliminated anti-dumping duties on PTA (Purified Terephtallic Acid), a vital raw material
for the manufacture of MMF fibre and yarn, as well as Acrylic fibre, a raw material for
the yarn and knitwear industries.
iii. The government has announced AatmaNirbhar Bharat Abhiyaan, a special economic
package aimed at improving the country's economy and making India self-sufficient. For
several industries, relief and credit support measures have been announced. Textile
weavers and artists can take use of these relief and credit support measures to resurrect
their enterprises, which have suffered as a result of the Covid-19 pandemic-induced
lockdown.
 iv. Textile and garment manufacturers across the country contributed to the expansion of the
PPE industry, with India emerging as the world's second largest producer of PPEs.
According to projections based on industry inputs, the country produced about 6 million
PPE body coveralls and 15 crore N-95 masks from April to December 2020. (as per data
available). Nearly 1100 manufacturers had signed up to make PPE Body Coveralls, while
more than 200 had signed up to make N-95 masks. This newly developed industry has a
market size of roughly Rs. 7000 crores.
v. The Union Budget announcements for 2021-22 include the commencement of a scheme
to establish mega investment textile parks. In the next three years, seven giant textile
parks will be built. These parks will help the textile industry become more globally
competitive, attract substantial amounts of investment, and create jobs. The programme
will allow global export champions to emerge.
vi. Over a five-year period, a Rs 10,683/- crore Output Linked Investment scheme spanning
MMF and Technical Textiles has been announced, which will establish global champions
in exports and significantly increase local textile production.

STATEMENT OF THE PROBLEM

The textile sector in India is the second largest employer, employing about 100 million people
directly and indirectly. The domestic textiles and clothing industry accounts for 2% of India's
GDP, 7% of industry output in value terms, and 12% of the country's export revenues.
As a result, it is critical to discuss the facts on the negative effects of the lockdown on the textile
industry and, as a result, India's economy. Each crises, however, brings about structural upheavals
and opportunity. This study goes over the master plan after COVID-19 as well as well-thought-
out, feasible ideas to restart and rebuild our economy through the textile industry. This study
concentrates on export potential, which can be enhanced by:
• Taking advantage of global anti-Chinese sentiment.
• Recognizing changes in consumer behaviour.
• Manufacturers and merchants must implement new strategies.
• Improving India's apparel industry and supply chain.
• Concentrate on "Atma-nirbharta" and global dominance techniques.
•Investing in new areas such as Meditech and technological textiles, which will be in high
demand in the future.
• Improving digitization and long-term sustainability in such circumstances.

NEED AND RELEVANCE OF THE STUDY:

This study is confined to export potential for textile industries in post Covid 19 pandemic. To
determine the severity of the situation, the government undertook a research titled "Impact of
Covid-19 epidemic on Indian Silk Industry."

OBJECTIVES

1. To study the export potential of textile industries in post Covid-19.

2. To study the active role of government and various textile associations and experts.
3. To study the issues and challenges for Indian textiles and apparel industry post COVID-
19

CHAPTER – 2
RESEARCH METHODOLOGY

RESEARCH DESIGN: -Descriptive research design is used in the current study.

DATA COLLECTION METHODS:

Primary and secondary sources are used for data collection.
PRIMARY DATA: Questionnaire were developed for collecting primary data. These
questionnaires were distributed to respondents for interviews.
The statistical method used is cost effective and is used as a mechanism for obtaining
information and opinion. A questionnaire can be placed on Google Forms or emailed to the
employees of Dixcy Textiles Pvt Ltd. These methods have little to no cost, though strong
targeting is necessary if you want to have the highest possible rate receive the most accurate
results. It’s quick and easy to collect results with online and mobile tools. This means that you
can gain insights in as little as 24 hours (or less!), depending on the scale and reach of your
questionnaire.

SECONDARY DATA: Newspaper , Magazines , websites and journals were used to collect
secondary data.

SIZE OF SAMPLE: 200

CONVENIENT SAMPLING: it is that type of sampling where the researcher selects the
sample according to his or her convenience.

UNIVERSE: Universe refers to the total of the units in field of inquiry. Our universes
were selected through random method among employees of Dixcy Textiles Pvt Ltd. in
Bangalore.

SAMPLING TECHNIQUE: Convenient sampling method is used, 200 respondents were

selected conveniently from target population in Bangalore.

SAMPLING UNIT: Sampling frame is the representation of the elements of the target
population. Sampling unit of our study was in Bangalore.

STASTICAL TOOLS:
MS-EXCEL was used to create pie charts and graphs, while MS-WORD was used to construct
the entire project report.
The data will be collected and entered in MS excel 2010. Different statistical analysis will be
performed using the SPSS software version 22. The one sample Kolmogorov Smirnov Test
will be employed to determine whether the data will be differed from a normal distribution or not
normally distributed data will be analyzed using parametric tests and non- normally distributed
data will be analyzed using non-parametric tests. Descriptive statistics will be calculated for
qualitative variables.

DATA ANALYSIS AND INTERPRETATION - Classification and tabulation transforms raw

data obtained through questionnaires into valuable information by arranging and collecting the
bits of data contained in each questionnaire, i.e., observations and responses, into clear and
organised statistics.
• Simple data tabulation with tally marks.
• Counting the number of responses and calculating the percentage.
• The following formula was used: (number of responses / total responses) * 100
Graphical analysis using pie charts, bar graphs, and other visual aids

Survey Questions With The Employees Of Textile Industry

1. The Indian textile industry contributes to 7% of the industry output (in value terms) and around
15% to the India’s export earnings. 
2. The Make in India initiative have been observed throughout the economy, these changes hold a
significant place for small cottage industries like the handlooms.
3. The Indian textile industry is one of the oldest industries in the country, with its roots from ancient
India.
4. Make in India initiative with respect to the textile sector sin India and how it might play a positive
role in uplifting this sector.

5. E-commerce platforms are big achievement for the textile industry because it removes the need
for co-operative stores and government funded market spaces.
6. The e-commerce platform has given the opportunity for weaver agencies and groups to directly
reach the consumers on a large scale.
7. The interest in a textile sector revival movement can be understood as a desperate measure to keep
the textile industry active
8. There is a need to make handloom tradition fashionable by introducing new designs and color
schemes, so that it can find a reference place in global textiles industry.
9. Shortage of yarn is one the major barrier for the development of textile industry.
10. Because of lack of finance and inadequate marketing facilities weavers are not able to promote
their products.
11. ‘Make in India’ scheme is giving a new lease of life to Indian textile industry.

LIMITATIONS OF THE STUDY

The report might be useful to Dixcy Textiles Pvt Ltd, however there are a few limits of the
examination:-
1. The size of the examination may not be significant and it is restricted to territory.
2. There might be absence of time with respect to respondents.
3. It is a lot of conceivable that a portion of the respondents may give the off base data.
4. There might be some inclination data given by organization experts.
5. As just single territory was reviewed or covered, it doesn't address the general perspective on
each field.
 CHAPTER – 3
STRENGTH, WEAKNESS, OPPORTUNITIES AND
CHALLENGES ( SWOC ) OF THE RESEARCH

Strengths
Flexible Labor Market: This sector in particular needs an abundance of manpower. However,
in Asia, the price of labor is very low. The labor rates in the textile industry (compiled by Warner
International) show that the average hourly wage rates for Bangladesh, India, Pakistan, and Sri
Lanka were respectively 0.23, 0.56, 0.49, and 0.39 USD.

Worldwide Demand: Clothing articles are one of the basic human needs. Everyone wants to
have a good quality product for a cheaper price. That’s where the textile industries come in.
They offer decent clothes for a reasonable price. This is the main reason, they get many buyers.

Involved Industries Increasing: In modern society, many support industries are growing. These
industries form a relationship of mutualism with the textile industry. Both parties are dependent
on each other. These industries are dyeing, finishing, embroidery, printing, etc.

Strong backward linkage facilities: This industry possesses strong backward linkage facilities.
This has proven to be a great asset on multiple occasions. This causes this sector to improve
more in its own way. Also, it provides the industry with some much-needed support.

Presence of economic zones: An economic zone is a type of facility that ensures that the buyer
gets to buy many products with the least tax possible. This encourages buyers to buy more from
this industry. This, as a result, allows the industry to make more sales and earn many profits.

Weakness
Lack of modern machinery: The textile industry lacks technology-oriented machinery and
production systems. If these aren’t updated then they could take a heavy toll on its production.
This will later reflect in its sales and profits.

Unable to go with the flow: Once a steady line of the production system is in place, it is very
hard to suddenly change it to accommodate any new type of clothing article. As a result, it lacks
product diversification. It also has a very short lead time which is not good for this line of work.
It holds back the whole industry.

Lack of forecasting: Lack of forecasting is the main cause of production setbacks. If an industry
is unable to provide a good forecast, it often causes major issues in the marketing sector. The
quantity available does not match the assumed quantity.

Depending on some specific buyers: Dependency on a few particular buyers can be the
downfall of this industry. Many of the farmhouses depend on a few of their known customers for
their sales. They do not get many new buyers most of the time and this causes their sales rate to
pummel once any of these buyers drop out or change their choice of farmhouses.

Higher bank interest and insurance policy: This industry has to face a lot of unfair treatment.
Especially when it comes to banks and insurance companies. Banks require a high interest while
taking loans which is nothing short of illogical. Many insurance companies, if not all, have a
high-priced insurance policy with partial conditions. The industry has to suffer for this.

Opportunities
Buyer attention on the Asian market: Many of the international buyers are being more
interested in the Asian section of the market. This may be a golden opportunity for the Asian
industries to take the market by storm. It will also be a huge turning point for this industry in
general.
Open costing facility for the international buyer: Many international customers find their
interest in this field being renewed by the open costing facility. This gives them a huge
advantage to draw more buyers in.

Government and non-government training programs: There are a lot of people who work in
this field. Even though they have curiosity, they often lack the skills that are needed. So, these
government and non-government training programs can help them to enhance their skill-set. This
provides the chance of improvement to this sector.

Buyer initiatives for productivity: In this field, many times buyers take responsibility to initiate
the push for productivity. This shows that the buyers are actually interested in the said products.
So, this gives a huge boost to the morale.

Challenges
E-shops and on-demand shops: There are many e-shops and on-demand shops that are
mushrooming their way into the market. Now, the market actually has some Internal competition
going on. So, these new shops often end up stealing a lot of customers away from the industry.

High making cost: The making cost for this industry is quite high and very hard to achieve. So
this makes having profit very hard.

Freight on board cost: Many times, the seller has to take the responsibility for goods, freight,
and marine insurance. This is a convenient system no doubt. But if an accident happens the loss
is very hard to deal with. This will majorly impact the earnings of it.

Political and environmental crisis: Countries that have a troublesome political environment,
have fewer buyers than those that don’t have them. Environmental issues can also influence the
flow of buyers in a country.
 CHAPTER – 4
OUTCOMES OF THE STUDY

 60% of the respondents are highly agree with the Indian textile industry contributes to 7% of
the industry output (in value terms) and around 15% to the India’s export earnings. 22% of
the respondents are agree, 10% of the respondents are neutral, 3% of the respondents are
highly disagree and 5% of the respondents are disagree with the same.
 67% of the respondents highly agree with the make in India initiative have been observed
throughout the economy, these changes hold a significant place for small cottage industries
like the handlooms.. 20% of the respondents agree, 10% of the respondents neutral with the
same and 1% of the respondents highly disagree, 2% of the respondents disagree with the
above statement.
 67% of the respondents highly agree with the Indian textile industry is one of the oldest
industries in the country, with its roots from ancient India. 10% of the respondents neutral
with the same and 1% of the respondents highly disagree, 2% of the respondents disagree
with the above statement.
 75% of the respondents highly agree,16% of the respondents agree with the Make in India
initiative with respect to the handloom sector sin India and how it might play a positive role
in uplifting this sector. 4% of the respondents neutral with the same and 2% of the
respondents highly disagree, 3% of the respondents disagree with the above statement.
 78% of the respondents highly agree,16% of the respondents agree with the E-commerce
platforms are big achievement for the textile industry because it removes the need for co-
operative stores and government funded market spaces. 3% of the respondents neutral
with the same and 1% of the respondents highly disagree, 2% of the respondents disagree
with the above statement.
 85% of the respondents highly agree,10% of the respondents agree with the e-commerce
platform has given the opportunity for weaver agencies and groups to directly reach the
consumers on a large scale. 3% of the respondents neutral with the same and 1% of the
respondents highly disagree, 1% of the respondents disagree with the above statement.
 78% of the respondents highly agree with the interest in a textile sector revival movement
can be understood as a desperate measure to keep the textile industry active. 5% of the
respondents neutral with the same and 1% of the respondents highly disagree, 3% of the
respondents disagree with the above statement.
 71% of the respondents highly agree with the make handloom tradition fashionable by
introducing new designs and color schemes, so that it can find a reference place in global
textiles industry. 6% of the respondents neutral with the same and 1% of the respondents
highly disagree, 4% of the respondents disagree with the above statement.
 66% of the respondents highly agree,20% of the respondents agree with the Shortage of
yarn is one the major barrier for the development of textile industry. 8% of the
respondents neutral with the same and 2% of the respondents highly disagree, 4% of the
respondents disagree with the above statement.
 74% of the respondents highly agree,19% of the respondents agree with the lack of
finance and inadequate marketing facilities weavers are not able to promote their
products. 4% of the respondents neutral with the same and 1% of the respondents highly
disagree, 2% of the respondents disagree with the above statement.
 81% of the respondents highly agree,14% of the respondents agree with the Make in India’
scheme is giving a new lease of life to Indian textile industry. 2% of the respondents neutral
with the same and 1% of the respondents highly disagree, 2% of the respondents disagree
with the above statement.
 CHAPTER – 5
EXPERIENCES, LEARNINGS AND CONCLUSION

Experiences and Learnings

Despite its large share of the global market and contribution of 2.3 percent of Indian GDP, the
Textile and Apparel industry has been severely harmed since the implementation of the GST,
following which imports in the sector have soared, owing primarily to apparels from low-cost
manufacturing destinations such as Bangladesh and Sri Lanka
It has also been hit by a drop in yarn exports as a result of different government subsidies being
phased out.
The industry is very capital demanding and relies on borrowings from banks and financial
institutions to meet its capital requirements.
Since May 2014, the industry has accounted for roughly 8% of total gross credit offtake from
banks, and its share has been stable. Total outstanding debt for the textile industry in FY 2020
was INR 23,58,125 million (USD 31,245 million) in terms of gross value. Positively, the textile
industry's gross nonperforming assets (NPA) as a percentage of total gross debt has been
declining since 2017, when it peaked at 27.5 percent. Despite operational challenges, the
declining trend in the NPA ratio indicates that the industry is improving its ability to service its
debt commitments on time.

GST Refund: Refunding GST payments in part or in whole for the previous six months is the
quickest way to reach the largest number of stakeholders. From handloom weavers in remote
corners of the country to shops and traders on now-deserted main streets, this will cover
practically the full spectrum of industry players. Since GST refund rates may be determined
based on the HSN codes used by registered dealers on their invoices, it would also be possible to
do this on a sector-specific basis, bolstering the government's quest for better compliance.

In light of the potential for the pandemic to have a greater impact on the low-margin, capital-
intensive textile business, the Confederation of Indian Textile Industry (CITI) has sought RBI for
a one-time loan adjustment, citing a 25-30% decline in overall demand in FY21.