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    Huge Investment In India'S Textile Industry May Be Invalid.

    2009/1/15 0:00:00 10251

    India

    At present, India's textile industry is experiencing a huge crisis. The textile industry invested 10000 billion rupees a few years ago. According to the report of the India Textile Industry Association, if the government fails to provide help to the textile industry in time, the textile industry will face a disaster. The price is very high. The textile industry created the largest direct and indirect employment opportunities for the state, 35 million employed directly, 47 million indirectly employed, and exported to US $22 billion in the 2007-08 fiscal year, accounting for 4% of the world's textile trade. The added value of manufacturing industry in textile industry is 14%. By 2012, the textile industry has the potential to re create 12 million direct employment opportunities and 5 million indirect employment opportunities. At the same time, it has the potential to expand exports to US $50 billion, and India's share of world trade will increase to 6%. But, since last year (2007-08), the textile industry has been influenced by external factors rather than its own factors. The rupee continued to appreciate in India and interest rates continued to rise northward. The rise in crude oil prices has also increased the cost of raw materials in the textile industry, and raw materials are a large part of the textile industry's investment. At the same time, in the second half of 2008, the global economic crisis broke out, the textile industry deteriorated, the global market demand was weak, and the textile industry faced an unprecedented harsh environment. At the same time, the government raised the minimum supporting price of cotton to 25-40%, and domestic cotton prices soared further. At the same time, the payment of funds by TUFS and TED was delayed, resulting in tight liquidity in textile enterprises. In just a few months, textile exports and production showed negative growth. Most enterprises suffered serious losses, and only a small number of enterprises had meager profits. According to reports, the textile industry has lost 700000 jobs in just a few months. By the end of this fiscal year (2008-09), the number of unemployed people is expected to reach 1 million. However, since there are negative factors, there are positive factors. For the textile industry, this will be a golden opportunity. If the government can provide timely help, the textile industry can take the opportunity to consolidate the foundation and transform the crisis into an opportunity. The textile industry is gradually moving out of North America, Europe and Japan. At the same time, China, Pakistan and Turkey are entering a very difficult period. This may lead to the transfer of textile business to other Asian countries, such as Vietnam, Kampuchea, Bangladesh and Sri Lanka. Therefore, India is likely to become the destination of the textile industry, because the impact of the global crisis on India is not too serious. But the two stimulus package announced by the government has little influence. Now, the textile industry expects the government to help them get through the crisis. As the Chinese government did for its own textile and garment industry, the Chinese government raised the export rebate rate for the three time in 2008, while providing other subsidies and incentives for the textile and garment industry. If the government takes measures, the textile industry in India will be able to gain a foothold. If the government's support policy can be extended for two years, the textile and garment industry can create 2 million 500 thousand more jobs. At the same time, exports in the 2009-10 fiscal year are expected to grow by 10%. The proportion of India's global textile trade will increase from 4% to 6%. The biggest advantage is that the textile industry invested 10000 billion rupees a few years ago into a bad asset. Yang Jing: editor in charge
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