A study to examine the impact of demonetization on the Indian textile industry
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Saqlain, Mohammed Noorus
MBA in Finance
Dublin Business School
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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.