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    The Development Of India Textile Enterprises Is Difficult. Government Intervention Needs Timely.

    2012/5/28 11:00:00 21

    India Textile EnterprisesTextile Enterprises

    India Garment Export Promotion Association (AEPC) said Wednesday that due to the global market slowdown,

    textile industry

    The government has been asked to intervene immediately to prevent unemployment and small business failures.

    "The textile industry employs about 45 million people. In the past two years, about 7-10% of the textile industry has lost their jobs. Now the unemployment trend is continuing. If the government does not intervene immediately, more people will lose their jobs," AEPC President Sakthivel said on Wednesday.

    He said that domestic banks are not cooperative, which is the main trouble encountered by the textile industry. The textile industry has been doubly hit by the economic crisis in the United States and Europe.



    The two markets account for nearly 65% of India's textile exports.

    "Banks are one of the biggest problems facing the textile industry.

    The bank issued a notice of closure.

    Because of the credit problem, a few small businesses are facing closure.

    Banks are also making trouble in terms of reasonable credit interest rates, "he said.

    The textile industry asked the central bank to restructure loans.

    It is estimated that the loan burden of the textile industry is about 1 trillion rupees.

    Cotton and cotton yarn prices surged in October 2010, followed by a slump in yarn prices in April 2011, resulting in a huge credit crisis in the textile industry because of poor demand in the Western markets.

    "The textile industry is also facing problems of rising raw material prices and high cost loans," Sakthivel said.

    In addition to ensuring the supply of raw materials, he also asked for export incentives and interest subsidies to cope with the severe economic situation.


     


    He said that in order to overcome these problems, the government should provide 2% interest subsidy to the textile industry in the forthcoming foreign trade policy.

    Increasing investment in the textile industry will help prevent losses, "he said.

    He also called for a long-term cotton export policy to preserve cotton reserves.

    In addition, the president proposed some other export incentives, including preferential marketing of key products in key markets to promote clothing exports.


     

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