Demonetization and GST have hit hard textile businesses in Surat. Production of fabrics has dropped from about four crore meters a day before demonetization to about 2.5 crore meters a day. The number of working embroidery machines has fallen and the demand for new shops has also dropped.

Exports of garments have dropped drastically. Fabric traders are not getting payment on time. Traders are facing a shortage of working capital. Institutional loans are not available and private lending has also stopped after GST.

Sales of local textile traders have dropped by about 30 per cent to 40 per cent. Falling earnings have resulted in traders’ shifting to low rent shops and demand for new shops has dropped. Those who had availed of loans are finding it difficult to honor their EMIs.

The number of embroidery machines has dropped by 1.25 lakh, 89,000- odd power looms have been sold at the price of scrap, exports are on a continuous decline and women working in embroidery are becoming jobless.

The withdrawal of high-value banknotes put sudden brakes on the disposable income of consumers. Many power loom weavers shut down their units and more than a lakh conventional power loom machines were sold in scrap.

Where till recently Surat produced 40 million meters of polyester a day, the figure now stands at only 25 million meters.