The Textile industries in India plays an important role in creating employment. In recent times
the Indian textile industry is facing falling in exports, rise in cost of production and low
productivity. As for now the event of demonetization has resulted a deteriorating effect on
Indian textile industry. The main purpose of the research is to investigate the current trends,
impact of demonetization on demand, productivity, cashflow and digitization in Indian Textile
Industry. A detailed questionnaire has been designed, the responses are collected and analysed
from the top and middle level management around 300 respondents have been approached.
This study aims at exploratory research design which gives a positivistic insight of the
undertaken study. The collected responses are analysed using IBM SPSS statistical software
version 20.0. The findings of the study concerning to the demand of textile products shows a
decreasing trend due to reduced currency circulation in the textile market, this resulted in
inventory accumulation leading to decrease in overall textile productivity. The cash flow
certainly took a back-step n distorted the entire value chain from farmers to textile
manufacturing companies. The industry is realizing the importance of digitization and yet
shows a slow trend towards adopting to digital innovations.