The Northern India Textile Mills Association (NITMA) – an association of textile mills located in Northern India, states that the textiles industry is currently facing the worst financial crisis and slowdown in 10 years. This has compelled spinning companies to bring down their production and shut down their mills. This is expected to lead to huge job losses of around 3 crore, according to the association. 

NITMA has blamed rise in cotton prices, excess spinning capacity and weak demand for Indian yarn in foreign markets for the crisis. It also laments the high interest rates and the dual impact of state and central taxes for exacerbating the problem.