The textile sector in Surat doesn’t expect to be affected much by the decision to scrap Rs 500 and Rs1000 denomination notes. This is because the industry has started to do business mainly by cheques. No major cash transactions take place in this sector. Surat’s textile sector does an annual business of Rs 50,000 crores based mainly on cheques discounting and the credit system. Surat has 150 textile markets with 60,000 traders who have a daily turnover of Rs 130 crores. In the short term the sector could face a liquidity crisis, but things will be on track soon with its credit supply chain working.

However, a dyeing mill owner says a cash crisis during the festive season can lead to a negative sentiment and that a problem can arise at the time of giving salaries to workers. A textile trader expects no trade due to cash crunch for at least two months.

Surat is well known for its synthetic products market. The textile industry in Surat is mainly engaged in the activities of yarn production, weaving, processing as well as embroidery. Nearly 30 million meters of raw fabric and 25 million meters of processed fabric are produced in Surat daily.