Indian cotton yarn exports in June 2019 were the lowest in the last five years. The textile industry is passing through a crisis. Poor demand in export and domestic markets, lack of skilled labor, and high raw material costs are all affecting textile units. Exports of yarn, fabric, and made-ups grew over 50 per cent from 2008 to 2018 but yarn exports saw a steep decline in 2019. China is the main market for Indian yarn. However, it gave duty free access to Pakistan in April this year and Bangladesh and Vietnam already have duty free access. The industry has sought tax refunds and competitive interest rates and the re-introduction of the interest subvention scheme apart from pro-active schemes to train labor. Another important factor for the industry is energy. Textile units in Tamil Nadu have invested in wind energy, initially with state support. Now the industry wants support for wind energy generation.

However, imports of textile machinery and spares are on the rise in India. Industries are focusing on production concepts such as 5S, lean manufacturing, and energy audits. Textile engineering units have a huge potential to tap in the country provided they upgrade technology constantly and concentrate on value addition.