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    India'S Textile And Garment Industry Is Facing Great Challenges.

    2008/11/28 11:04:00 19

    India Textile And Clothing

    India, which is China's developing country, has great momentum in the development of textile and clothing.

    India, like China, has sufficient labor force.

    However, with the outbreak of the financial crisis and changes in the international situation, India's textile and garment industry is facing enormous challenges.

    According to G.K.Pillai, Minister of Commerce of India, India textile industry is the second largest export pillar in China. Due to the global economic crisis, the textile industry will be reduced by 500 thousand jobs by April 2009.

    The textile industry employs about 38 million people, accounting for about 8% of India's gross national product, but the textile industry is facing a grim situation.

    India's biggest export market, the US and European economies, have fallen back, and demand for India products has decreased. India's exports have declined for the first time in 7 years.

    Exports dropped 12% to $12 billion 800 million in October.

    India may not be able to export its target of 200 billion US dollars this year (to March).

    India's commerce minister G.K.Pillai claims that the Supreme Council, headed by Prime Minister of India, is expected to announce a tailored rescue package for the textile industry.

    The Commission recently held a strategy of "global economic slowdown and sustainable export development in India".

    The meeting said: the Secretary of the Committee has discussed specific issues with many export industries. We hope to conclude the discussion on Monday and submit export aid measures to the Supreme Council on the weekend, and be approved by the Committee.

    Mr. Pillai said that a ministerial meeting would be held in the first week of December to discuss export related issues and to accelerate repayment of the arrears in the textile industry, including the return of value-added tax.

    The government will actively consider restoring tax rebates and certificates of rights and obligations, and the government lowered the relevant export tax rebates before the financial crisis and the rupee appreciation.

    India will also step up anti-dumping measures to prevent large-scale dumping from China, Korea and Taiwan.

    Delegates from textile, chemical, clothing, leather, footwear, synthetic fibers, tires, iron and steel, flour mills, rice, handicrafts, motorcycles, meat and poultry industry all listed the problems facing their industry, and urged the government to take immediate rescue measures.

    In addition, the government of India has ruled out a downward revision of the minimum cotton support price.

    Taking the lead of the India Cotton Corp, the government suggested that the minimum supporting price of cotton should be lowered, because the minimum supporting price of cotton has been increased by 40 to 45 percent.

    During the adjournment of the seventh national commodity exchange conference, SharadPawa, the Federal Minister responsible for agriculture, consumer affairs, food and public distribution, said that the government did not consider modifying the minimum supporting price of cotton.

    He said the government needs to protect the interests of farmers.

    The price of most cotton varieties increased by 30 - 35% over the previous year due to the increase in the minimum supporting price. The demand for textile industry was sharply reduced, and the export order was withdrawn due to the global economic slowdown.

     

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