Home / Knowledge / News / Textiles / Weak demand for textile machinery a threat to export revenues
Weak demand for textile machinery a threat to export revenues
Sep '08
The 48th Annual General Meeting of the Textile Machinery Manufacturers' Association (TMMA) was held on August 25 in Mumbai where a host of concerning issues were discussed threadbare.

With regard to the exports of machinery, records reflected stagnancy both in terms of overseas demand and exports, overshadowing the industry for the past three years.

Presently the country is exporting machinery products to Malaysia, Indonesia, Pakistan, Sri Lanka, Bangladesh, Egypt, Middle East, Africa, South America and a number of other European countries. Exports this fiscal are expected to fetch Rs4,850 million against Rs4,890 million recorded last year.

This slowdown in textile machinery during 2007-08 has also affected the growth in the textile engineering industry which has dropped from 26 percent to a petty 7 percent and which is likely to register a negative growth for 2008-09 fiscal as well.

While production of textile machinery, parts and accessories has increased from Rs27,990 million in 2006-07 to Rs29,970 million in 2007-08, recording an annual growth of 7 percent, import of textile machinery has dropped considerably from Rs94,340 million last fiscal to Rs75,000 million in 2007-08.

In an exclusive interview with Fibre2fashion, Mr S. Chakrabarty, General Secretary of TMMA, came upfront about some of the key reasons behind the decline in demand and overall growth of the machinery industry. He noted saying, “Slowdown in world economy and Indian textile industry in particular has been adversely affecting the machinery sector in a number of direct and subtle ways.”

Detailing on this point Mr Chakrabarty asserted that the Indian textile industry is in an extremely pathetic condition and since it is co-related to the textile machinery industry the latter is is also bound to get impacted by the backlash. Reasons have been attributed to higher cotton prices, increased power cost, non availability of power, increasing cost of labor and bad labor laws. Besides, accelerating rupee appreciation in the period between 2006-2008 have led to an acute recession in the demand for textile machineries

Orders for these goods have witnessed a drastic plunge of about 40-45 percent and while on the one hand companies are not taking deliveries on time, on the other, payments are also being delayed. As if this was not enough, large scale importing of second hand machineries and cheap Chinese equipments of inferior quality have also turned out be a nuisance for the domestic machinery industry.

In response to a question regarding the measures to be taken to check such alarming downtrend, Mr Chakrabarty opined, “Textile Industry needs to be provided by soft loans schemes. The industry also requires Government support and aid for modernization and research & development. Importing of components at zero duty can also be considered as a viable measure to boost up the textile machinery sector.”

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search