India’s textile industry, which had been languishing for the last few years following demonetization, GST, rupee appreciation and high cotton prices, is finally showing signs of revival. The gross NPA ratio rose from 19.4 per cent to 22.8 per cent during September 2017 to March 2018 whereas the stressed advances ratio increased from 23.9 per cent to 24.8 per cent.

The support extended to the textile sector including the Rs 1,300 crore Samarth scheme for skilling, the Rs 6000 crore package for apparel and made-ups along with various state incentives, is expected to create a strong turnaround in the textile sector and put the industry back on the growth path.

However, excess imports remain a problem. In fiscal 2018, imports of textiles and apparel were 16 per cent higher than the previous year’s value. All categories across the value chain have seen a drastic rise in imports. Fabrics and apparel imports have seen a rise of 27 per cent and 30 per cent respectively. Also, embedded duties, which are in the range of four per cent to six per cent across the value chain are not getting refunded.

The biggest game changer that could transform the industry and put it at par with its competitors such as Vietnam and Bangladesh is free trade agreements with the EU, Australia, Canada and Britain for made-ups and garments.