India'S Textile Industry Is In The Doldrums And Exports Are Blocked.

After last year's huge appreciation of rupee, the textile industry in India seemed to be in the doldrums. The world economic downturn led to a sharp decline in demand in major markets, including the United States, the European Union and Japan. The export of India's textile industry suffered heavy losses.

The dark clouds hanging over the top of the textile industry are becoming increasingly unlucky, and the textile industry is the second largest job creation industry in India, next only to agriculture, but also the second largest export industry, behind the information technology industry.

60% of India's textile output is exported to the United States, the European Union and Japan, and these three markets all have liquidity crises.

At present, the export of textile industry is reduced. The government estimates that textile companies may reduce about 500 thousand employees in the next 5 months.

The India Textile Industry Alliance (CITI) claims that about 700 thousand jobs will be cut in the next 6 months.

Even if the currency depreciates in India, the depreciation of the US dollar has exceeded 20% in the current fiscal year.

CITI pointed out that the global financial crisis has seriously affected India's clothing exports, and the export scale of -9 in July was reduced 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.

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

The textile industry has a total market value of US $52 billion, accounting 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, although the rupee's appreciation of the US dollar has greatly affected export growth.

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

(TUFS) the textile industry will receive 20 billion rupees (US $402 million) in support of the technology renewal fund. Now the textile industry is seeking urgent government intervention to save them from the current 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 pointed out that because of the abolition of export incentives by the India government, while other countries, such as China and Pakistan, provided huge export incentives for textile exporters, the competitiveness of India's domestic enterprises gradually weakened.

Last year, when the rupee appreciated against the US dollar, the government began to offer low interest loans to textile exporters (interest subsidy scheme), but this plan was cancelled in October this year.