“Surat generally gets bulk orders from various parts of the country. Demonetisation has badly affected our business dealings. Consumers are spending as low as possible. Textile sales have gone down by 50-60 per cent. Placing of order has also reduced by around 75 per cent. The situation is such that weaving has decreased by 60 per cent and processing by 30 per cent. Cash inflow is also very slow. However, it is a positive sign for us that few consumers are still purchasing garments via credit/debit and online system,” Southern Gujarat Chamber of Commerce and Industry president BS Agrawal told Fibre2Fashion.
Despite slow business in the textiles, representatives of the sector welcomed the move hoping that it will ensure systematic functioning of the entire value chain related to the industry.
“Initially, the sales had gone down to around 15 per cent. With time, the sales have improved a bit and we hope that it increases with the recovery of cash crunch in the market. However, demonetisation will definitely benefit the textile business in the long run. It is expected that this initiative by the government will restrain all unbilled sales,” said Naishadh Parikh, chairman, Confederation of Indian Textile Industry.
“The situation is not very good. It will take time for the market to move towards cashless economy. Large retailers have not been much affected as consumers are doing purchases with plastic money and via online. However, with the ongoing wedding season, domestic retail shop owners are bearing the brunt of demonetisation,” said Ajay Sahai, director general and CEO of Federation of Indian Export Organisations. (RR)
Fibre2Fashion News Desk – India
Relaxation in FDI norms will support growth of retail sector
‘There is huge demand in the Indian lingerie market for non-wired styles.’
Competition is the best thing that can happen to a startup
The Shradhdha Group of companies was established in 2010 and is based out...
The custom-built machineries of Brugman Holland are known for reliability, ...
Premier Looms is a leading provider of cutting-edge machinery and...
Dieffenbacher India Pvt Ltd
Germany-based Dieffenbacher Group is a producer of high-quality composites ...
INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...
Investkonsult Sweden AB
Investkonsult Sweden AB are consultants in the nonwoven and absorbent...
Rupa Sood and Sharan Apparao
Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...
"You have to truly understand what your client wants, know her needs, what ...
Aditi Somani specialises in luxury fusion wear with international cuts and ...