Setting Back in Motion – Oldest Industry of India
November 8 th 2016, Narendra Modi announced the demonetization of Rs. 500
and Rs. 1000 notes, with this began a race of time, people were running around to
convert their old notes and buy in newer Rs. 500 and Rs. 2000 notes, one such
industry within this commotion was the Textile Industry of India, the one industry
which still comprises of second largest employment all across India and in year
2010 contributed to 11.04% of total exports of India.
Textile Industry employment consists of both literate and illiterate class
basically the blue-collar jobs that work mainly on cash. With the absolute cash
crunch suddenly in the picture it was very difficult to continue work while providing
to the basic needs of the family for the employees. The Employer was ready to pay
however in old cash, but the employees being from various backgrounds most of
them without even appropriate ID cards found it difficult to work under such
situation where they would have no place to go convert the cash.
Starting from top down on the value chain, purchase of apparels was highly
affected due to unavailability of liquid cash, which in turn affected the cash flow to
the textile industry. Textile Manufacturers into seasonal wear were highly affected,
since the announcement on November 8 th 2016, the sales of winter wear in India
highly dropped due to lack of liquid cash. The retailers were affected due to the slow
down of apparel purchase, resulting in a less cash flow into the textile
manufacturing, which resulted in the complete slow down of the value chain. Cotton
harvest season is around October – November, however due to demonetization,
farmers were unable to sell their cotton resulting in increased inventories, and
bottoming of prices.
Looking at both sides of the coin, clothing is one of our basic necessities;
eventually it would fall back into its place once the country is comfortable with the
routine of newer notes. We will always need clothes and eventually would start
purchasing apparels with credit/debit and online modes. This in turn would start
the cash flow in retailers and eventually leading down to manufacturers and mills.
We need to understand this process as a temporary slow down in the textile
industry, which would rise back up in a couple of months eventually leading to
On the other hand, a similar situation would lay across with exporters, where
liquid cash would be available more easily and blue collar jobs would not be affected
eventually. If we go to see the demonetization has made us realize the importance of
appropriate paper work in the blue collar employees which would eventually help
them and us as well. A temporary phase that was set into motion will now
eventually fizzle out and textile industry would be back into routine as before.
What is Textile Basket
Textile Basket, is the world’s first and largest e commerce fabrics
marketplace, here to fulfill all your fabric needs. With over 8000 varieties of fabrics
on www.textilebasket.com, we cater to all the readily available fabric needs of an
entity directly from over 100 suppliers across India.
Moreover, our second largest segment is Make to Order, where we create the
fabric of your choice at the best possible rate and quality. This not only helps
manufacturers reduce costing but also create their own innovations.
Our third largest area of concentration is discounted readily available fabrics.
All across India, there are a large number of manufacturers that always have some
stock fabrics left over after production, due to excess fabrics or cancelled orders etc,
these fabrics are of premium quality, lying around in the factories, the
manufacturers are ready to sell these fabrics off at a slightly lower rate than
purchase rate, and there are more than enough manufactures around ready to buy
Hence, Textile Basket becomes your one stop shop for all your fabric needs,
making fabric purchase simpler than ever.