The textile sector in India is showing signs of recovery.The stressed advance ratio of the textile sub-sector has improved in March 2018 from the levels of September 2017.

The sector was heavily hit by demonetization, GST, rupee appreciation and high domestic cotton prices.

Support in the form of the Rs 1300-crore ($US 185.41 million) Samarth scheme for skilling and the Rs. 6000-crore($US 855.86 million) package for apparel and made-ups, along with various incentives, is expected to create a strong turnaround in the textile and clothing sector and put the industry back on the growth path.

What the industry now needs is policy support for stopping excess imports and refund of all duties and taxes on exports across the value chain. In the financial year 2018, imports of textiles and apparel were 16 per cent higher than the previous year’s value. All categories across the value chain have seen a drastic rise in imports.

Moreover, embedded duties, which are in the range of four per cent to six per cent across the value chain, are not getting refunded. This is one of the key factors for the decline in exports, apart from blockage of funds due to delay in GST refunds and rupee appreciation.