The weaving sector of India is expected to improve in the coming months. Reason: positive signs from China, one of the leading importers of yarn from India. During October 2018, cotton yarn, fabrics and made-ups witnessed a growth of 25 per cent, while manmade fibers, textiles and apparel grew by 31 per cent, 28 per cent and 54 per cent respectively. All commodities witnessed a growth of 33 per cent during the same period. India is likely to outdo China in the textile sector.

Contributing factors are cheap labor and modernization. With quality and skilled labor and machinery, India can easily overcome Chinese competition in the textile industry as labor costs in China are very high compared to India’s. India aims at doubling the annual revenue from textiles by 2025.

Foreign direct investment is being encouraged in the textile sector, which has the potential to create millions of jobs. 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. Packages and incentives are expected to create a strong turnaround in the textile and clothing sector.