Home / Knowledge / News / Textiles / ASSOCHAM urges government to revive textile sector
ASSOCHAM urges government to revive textile sector
21
Oct '08
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has urged the government to undertake remedial measures such as labour laws flexibility, continuation of interest subvention scheme to textile exporters, fiscal incentives on fresh investments, provision of subsidized and uninterrupted power supply to textile mills in order to revive the textile and garments sector which is facing hard times.

The weakening of rupee against dollar should have pleased the textile exporters, but it has been offset by the surge in cotton prices, long power cuts, high credit, sluggish market and the global economic slowdown, further added by ASSOCHAM.

“From the sunrise sector, textile sector is at the verge of again slipping back to the stagnant phase. Government needs to provide maximize policy support to ensure India retains its competitiveness in the textile and garments sector so that employment is not hurt”, said Mr. Sajjan Jindal, President, ASSOCHAM.

While the Eleventh Five Year Plan, targets 22 per cent growth in Indian textile exports, the growth rate has decelerated from 16.6 per cent in 2005-06 to 13.50 per cent in 2007-08. The order for textile products from India has come down drastically from the largest importer, the US, concerning the financial crisis resulting in fewer export orders.

ASSOCHAM feels that India needs to change the direction of its export from the US and Europe to regions of Middle East and Africa. Only 12.5 per cent and nine per cent of textile exports are directed towards Africa and Middle East respectively.

Huge potential lies ahead for strategic expansion of the export market, but unstable economic conditions at the short term period in African regions calls for special fiscal and monetary incentives for the new venture for a specified time period.

The growth rate in the production of cloth by the mill sector decelerated from four per cent in 2006-07 (April-March) to one per cent in the same period of FY'08. The cloth production by the power loom sector also witness slowdown from seven per cent to five per cent for the same periods.

Similarly, growth of cloth production by handloom sector also witness marginal slip from seven per cent in 2006-07 (April-March) to six per cent in 2007-08 (April-March). The cascading effect is that the textile mills are likely to cut production further by 20-25 per cent, while some units have been closed down with millions getting unemployed.

The second largest employment generating sector next to agriculture that accounts for 21 per cent of the total employment generation in the economy is expected to generate 17.37 million new direct and indirect jobs during the 11th five year period. On the contrast, the sector is already trailing behind and the crisis in turn have added the pressure as almost 1.5 million people across the textile verticals have lost job since last year, few more millions are going to join the group.

Must ReadView All

Textiles | On 21st Feb 2017

Net profit at Indorama Ventures zooms 145% in 2016

Net profit at Thailand headquartered and Aloke Lohia led Indorama...

Information Technology | On 21st Feb 2017

ThreadSol launches IntelloBuy & IntelloCut in Vietnam

ThreadSol, the pioneer of enterprise material management for sewn...

Textiles | On 21st Feb 2017

GST to reduce documentation for logistics firms: CBRE

The Goods and Services Tax (GST) is likely to result in a reduction...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search