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    Sharp Decline In Demand, Printing And Export Enterprises Suffered Heavy Setbacks

    2008/12/6 0:00:00 47

    After a substantial increase in rupee last year,

    India textile

    Industry seems to have fallen into

    Sluggish

    Whirlpool,

    world economy

    Recession leads to major markets

    U.S.A

    India textile industry exports have been hit hard by the sharp decline in demand from the EU and Japan.

    Enveloped

    textile industry

    The dark clouds overhead are becoming more and more unlucky.

    textile industry

    It is India's second largest industry that creates jobs, second only to agriculture and the second largest export industry, after the information technology industry.

         

    India textile

    60% of the total output is exported to

    U.S.A

    The European Union and Japan, and the three markets are flowing.

    Capital crisis

    at present

    textile industry

    Exports are decreasing. The government estimates that textile companies may cut about 500 thousand workers in the next 5 months.

    India textile

    The industry alliance (CITI) claims that about 700 thousand jobs will be cut in the next 6 months.

    Even now that India's currency depreciates, this fiscal year has depreciated more than 20% against the US dollar.

    CITI points out that the world

    financial crisis

    Serious impact on India's clothing exports, -9 export scale in July narrowed by 30-35%.

    Exports to the United States and the European Union account for 60-65% in the total volume of clothing exports in India.

    The group said clothing exports exceeded $9 billion last year, but demand fell sharply this year, and exports were around $7 billion 500 million.

    There are 15000 textile companies in India, exporting 20 billion 500 million US dollars, accounting for 17% of the total exports of the country.

    textile industry

    The total value of the market is US $52 billion, which accounts for 26% of the manufacturing industry, accounting for 20% of the industrial output value, accounting for 18% of the industrial employment rate.

    The contribution rate to the total export revenue is 15%, and the contribution rate to the gross national product is 4%.

    About 35 million employees.

    In addition, 50 million people are engaged in related activities.

    By 2012, the market value of textile industry is expected to reach US $115 billion.

    The government expects textile exports to grow by 15% in 2008-09, but failed to complete the export target set at US $25 billion last year.

    2007-08

    India textile

    Exports amounted to US $20 billion 500 million, but the target was US $25 billion.

    2007-08 exports increased by 10% over the previous year, though the rupees were right.

    dollar

    Substantial appreciation has affected export growth.

    The export target set by the government in 2012 was US $55 billion.

    According to the technology renewal fund arrangement (TUFS), the textile industry will receive a support of 20 billion rupees (US $402 million). Now the textile industry is seeking urgent government intervention to save them from the present.

    crisis

    This year, the government allocated 10 billion 900 million rupees ($219 million) for TUFS.

    CITI also asked the government to provide 7% interest on loans for cotton purchases within 9 months, reduce margin and add 20 billion TUFS to the fund.

    CITI points out that

    India

    The government abolished export incentives, while other countries, such as China and Pakistan, provided huge export incentives for textile exporters. Therefore, the competitiveness of India's domestic enterprises gradually weakened.

    Last year, when rupee was right.

    dollar

    At the time of appreciation, the government began to

    Spin

    Exporters offer low interest loans (interest subsidy scheme), but this plan was cancelled in October this year.

     

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