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    India Textile Exporters Face The Risk Of Order Revocation

    2008/10/28 0:00:00 41

    India textile minister Shankersinh Vaghela said that large shopping malls in the United States and Europe are canceling orders for India's clothing exporters. Therefore, India exporters are also faced with the risk that international buyers will not pay the goods.

    He said that even large shopping malls in the United States and Europe were canceling orders, and India exporters accounted for 70% of exports from the US and European shopping malls.

    Although exporters benefit from the depreciation of the rupee, they are facing Default from buyers. Moreover, the global recession has also led to a reduction in their orders.

    The minister said that European and American buyers were revoked by the bank after they opened the letter of credit.

    Meanwhile, Rakesh Vaid, chairman of the garment export promotion committee, said that the export of clothing exporters in India is expected to decrease by 10% as a result of the global economic downturn this year.

    Vaghela says, what can they do if the exporter can't get the order?

    He said that under such circumstances, the government could not provide much help to enterprises.

    In 2007-08, India's textile exports reached US $22 billion, lower than the US government's export target of US $25 billion.

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