Fri Jul 18 13:54:29 UTC 2025: Here’s a news article summarizing the information, formatted as a business report:
**Indian Textile Industry Seeks Solutions to Credit Crunch, CITI Calls for MSME Input**
**Coimbatore, July 18, 2025** – The Confederation of Indian Textile Industry (CITI) is actively soliciting suggestions from the textile industry, particularly Micro, Small, and Medium-scale Enterprises (MSMEs), to address the persistent financial stress facing these units. This move comes after the Ministry of Textiles conducted a comprehensive study on credit access issues within the sector, culminating in a roundtable discussion led by the Textiles Secretary.
A key concern raised during the roundtable was the inadequate understanding of the textile industry’s specific financial needs by banks. Participants highlighted the long payment cycles, prevalence of job work, and other unique operational nuances that existing banking models often fail to accommodate. The discussions underscored the need for banks to improve access to credit for textile businesses.
The perception of high risk associated with the textile industry, fueled by credit rating systems deemed inadequate for the sector, was also identified as a major hurdle. The Textiles Secretary has tasked stakeholders with developing a textile-specific credit rating protocol to address this issue.
Participants also proposed the creation of a consolidated “Green Fund” to streamline financing for sustainable production initiatives, such as energy efficiency and water management projects, within the textile industry. This fund would combine existing separate funds into a singular resource.
Furthermore, concerns were raised regarding the accessibility and utilization of the Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE). Industry representatives reported difficulties in accessing the fund and a low overall utilization rate. The establishment of cluster-level credit facilitation centers was suggested to improve access to the fund.
CITI is urging textile businesses to submit further suggestions to improve MSMEs’ access to funds. This initiative aims to develop concrete solutions to alleviate financial stress and bolster the growth of the Indian textile industry.
**About the Hindu:**
The Hindu is a leading Indian newspaper bringing you news from across the world. Along with world affairs, business and technology, regular columns dedicated to books, health and science keep readers up to date. The Hindu encourages active engagement with readers through online comments, subject to community guidelines.
First Piper 