2007, a tumultuous year for textile industry – a review

13 Jun '08

5 min read

Talking about the looming recession in the US market, the TEA, President stated, “Yes, if we analyze the total garment exports from Tirupur, the market share of United States is near about 30 to 35 percent, which is a major share in a particular country. The consumption pattern of US is also on higher side compared to EU market. In view of this, the looming recession in US market has largely affected us.”

“In order to overcome the difficult situation in 2008, we are trying to explore the new markets and also taking right steps to cut down our cost by increasing productivity, implementing right kind of systems and producing value added garments. We are concentrating now on the production of garments made out of organic cotton and also other specialized products which has good market potential in the global market and also fetch higher price than the regular garments”, disclosed Mr Sakthivel.

Recently rupee has been experiencing depreciation. Experts analyze that recovery of US dollars, and higher crude oil prices are majorly responsible for devaluation of rupee; Discussing about this crucial issue, the TEA President evinced, “I don't foresee the depreciation of rupee further since RBI has already selling the dollar in the market and hope the chances of rupee depreciating further is limited. Moreover, when the oil prices are becoming dearer, the Government would naturally advise to keep the rupee depreciation in control. The depreciating trend will not sustain for a longer period.”

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