Textile sector hit by rising imports & NBFC crisis
Largely made up of micro, small and medium enterprises (MSMEs), India’s textile sector has been severely affected by cash crunch owing to the financial fiasco in non-banking financial companies. The lack of working capital has prevented companies from capacity expansion and made servicing of existing loans difficult. Sales also continue to be sluggish in India & are said to have been slumped by 20-25% in recent weeks.
The industry is also in a quandary over the rising apparel imports from Bangladesh. It is advocating that India should make it mandatory for Bangladeshi exporters into import fabric from India.