The Indian textile industry is looking to complete its transition in the wake of demonetisation and GST. Internal factors are improving, even as external factors are in favor of India. China is retreating from a large part of the textile value chain and that is expected to favor India.

On export front too, things are turning around. Exports of textile and apparel grew 38 per cent during October 2018 as compared to October 2017. Over the same period apparel exports grew at a whopping 54 per cent. Textile and apparel production registered a growth of 5.4 per cent and 20.9 per cent respectively during September 2018.

Continuous growth in exports would boost employment, scale up production and most importantly the Make in India initiative will be a reality for the textile and clothing industry. The big issue is of imports from Bangladesh. With full exemption from basic customs duty Bangladesh is a gateway for Chinese fabrics entering India duty-free. This is because no rules of origin are in place for duty-free imports from Bangladesh.

Import duty has been increased on several textile and apparel items. The move follows an unprecedented rise in imports in the last few months, even as exports of textiles and garments have grown very marginally.