"The government should extend incentives for boosting exports. If there is any kind of sops for the textile industry that the finance minister can do, it will help industry tide over this problem. Service tax levied on the exporters should be removed."

India is the second largest textile economy in the world next to China. Decline in the exports will create an oversupply in the domestic market, causing a rapid erosion of competitiveness and ultimately the profits of the country. Export figures are estimated to stride into a negative territory in 2009-10. The deepening recession in Indias primary markets such as US, Japan, and EU have forced Indias exports into a negative zone. During the recent past India has witnessed a sharp fall of 33% from its 5 billion dollar export market.

Textile industries are now upgrading their technology to compete in the global forefront. Indian textile sector generates 35 million jobs and is estimated to create another 10 million jobs in the next 5 years. A strong domestic demand and Government stimulus will initiate growth in the textile sector. Increased capacity and quality of the garments will attract the foreign buyers towards India.

References:

1)       http://www.indopia.in

2)       http://www.financialexpress.com

3)       http://news.indiamart.com

4)       http://www.marketresearch.com