Business for the textile and apparel industry in India has fallen by 30 to 40 per cent since demonetization. Since consumers at first had to make do with Rs 2,000 notes they deferred purchases. There was an abrupt decline in domestic sales which hit bottomlines. There was an immediate and total disruption. Sales were down completely. Retail counters wore a deserted look. Such headwinds are expected to persist for at least a quarter. Apparel sales are expected to recover gradually with the availability of new currency notes especially in lower denominations.

Many handloom, power loom and cottage fabric manufacturers continue to operate largely in cash. In the garment business, a large section of retailers at the bottom of the pyramid deals largely in cash.

The wedding season is on but consumers are in no rush to buy. People are opting for sober marriages and cutting down on wedding gear. The apparel sector, however, has hailed the overall scheme as good for the long term, on expectations of transparency in the entire value chain.

The Indian textile and apparel industry is estimated to be worth a $100 billion. It anticipates new measures which would inject liquidity into the system.