India Leather Textile And Garment Industry Is Facing Great Challenges.

India has great potential in the development of textile and garment industry.

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 great 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 reduce 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.

Because of the biggest recession in India and the recession in the US and Europe, the demand for India products has decreased, and India's exports have declined for the first time in 7 years.

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

India 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.

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

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

India will also strengthen anti-dumping control to prevent large-scale dumping from China, Korea and Taiwan.

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

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

The India Cotton Corp has previously advised the India government to lower the minimum support price of cotton because the minimum supporting price of cotton has been raised by 40-45%.

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

He believes that the government needs to protect the interests of farmers.

The price of most cotton varieties increased by 30-35% over the previous year as the minimum support price increased.

Yang Jing: editor in charge