Home / Knowledge / News / Textiles / Liquidity crisis grips Indian textile sector
Liquidity crisis grips Indian textile sector
Jul '11
Textile mills in the country could be in trouble with banks in the coming days. It may prove to be difficult to access working capital, considering that there still prevails economic uncertainty in the European Union, which is a major market for Indian clothing.

According to a report of the Confederation of Indian Textile Industry (CITI) the overall textile and apparel sector lost a staggering Rs 110 billion, as unprecedented volumes of inventories have built up with companies, as domestic as well as overseas buyers are reluctant to place new orders.

This has put extreme pressure on the liquidity position of the textile and apparel manufacturers.

To top it, spinning mills alone will have to fork out around Rs 70 billion this year as repayment of principal and interest for the loans they had taken for expanding and modernization of spinning units in the last ten years.

This does not include the loans taken by other segments of the textile and apparel sector to either expand or put up new plants.

CITI is of the opinion that the government should announce a relief package for the whole sector in order that companies do not default on their loans or close down, considering the fact that their repayment capacity has declined.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Textiles | On 20th Feb 2017

Sri Lanka's textile exports rise 2.3% in Jan-Oct '16

Exports of textiles and garments from Sri Lanka increased by 2.3 per...

Interviews View All

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search