Key Takeaways
- Textile industry demands trade relief extension to spinning and weaving sectors
- India’s textile exports fell 10.34% in September 2025 year-on-year
- 82% of firms extended credit by 3-6 months due to severe liquidity crisis
The Southern India Mills’ Association (SIMA) has urged the government to extend recent trade relief measures to spinning and weaving units, warning that the entire textile value chain faces severe financial strain.
Export Decline and Production Disruptions
India’s textile and apparel exports dropped 10.34% in September 2025 compared to the same month last year, according to SIMA chairman Durai Palanisamy. Cotton yarn, fabrics, and made-ups declined 11.66%, while apparel exports fell 10.14%.
Production disruptions ranging from 25-70% across powerloom, knitting, and garment units, combined with weak demand, have severely impacted revenues and margins. Approximately 82% of firms have extended credit periods by three to six months to manage liquidity constraints.
Competitive Threats and Supply Chain Crisis
Exporters are facing order cancellations as buyers shift to lower-tariff competitors, threatening long-term business relationships. The current relief measures cover garments and made-ups under HS Codes 61, 62, 63 and 94.
SIMA argues these benefits should extend to capital-intensive spinning, weaving, and processing segments (HS Codes 52, 54, 55 and 60), which supply essential yarns and fabrics to downstream manufacturers.
Industry Support for Relief Measures
A. Sakthivel, vice chairman of the Apparel Export Promotion Council, acknowledged the measures will provide substantial relief to apparel exporters grappling with prolonged payment cycles and global demand uncertainties.
