Southern India Mills’ Association (SIMA) says, 2019 was a challenging year for the Indian textile and clothing industry, especially the spinning sector, due to steep fall in cotton yarn exports. Majority of the textile mills had to cut down production and face an unprecedented crisis.

Export of cotton yarn declined by 37 per cent between April and October this year compared to the corresponding period last year. Exports of cotton fabrics and made ups also reduced by 2 per cent while those of manmade yarn, fabric and made ups, and ready-made garments declined by 5 and 3 per cent respectively. The industry is concerned as imports of fabrics and MMF ready-made garments have increased during the same period.

J James, President of Tamil Nadu Association of Cottage and Tiny Enterprises says, year 2019 was one of the worst for the micro units as every bigger factory that gives job orders to these units insist that the unit should have GST registration. These micro units continue to demand total exemption from GST.