Indian textile exports have witnessed a bearish trend for two years in a row. Factors that have led the growth curve downward include the time taken to align to the new goods and services tax regime, the downward revision of export incentives, and the credit squeeze particularly faced by small and medium enterprises.

The Indian textile sector is one of the oldest in the Indian economy. The sector is highly diversified, catering to a wide range of segments ranging from traditional handloom products to cotton, wool and silk products and has products that vary across natural and manmade fiber, yarn and apparel. Additionally, the textile industry is closely linked and dependent on the agriculture industry in order to source raw materials such as cotton. The industry has earned a unique place in the economy due to its strong future outlook, numerous employment opportunities it has generated and the strong export numbers it has generated. The availability of large varieties of cotton fiber along with the fast-growing synthetic fiber industry has helped the industry build a strong foundation for itself. The textile industry in India has large and diversified segments that in turn enable businesses and end-consumers to choose from a wide array of products.