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International turmoil confines textile industry growth – Visaka
03 Nov '08
2 min read
Global financial crisis has created havoc on the world economy, impact of which is evident in almost all aspects of life.
India is also feeling the ripple effects of this international turmoil. After a steep growth for quite some time, country's economy is now witnessing a slump. High inflation rate and wavering industrial growth is making the life of industrial people miserable.
Mr V Vallinath, President (Finance), Visaka Industries, shared his precious view point with Fibre2fashion regarding the current scenario of the textile industry both in the domestic and international arena.
Mr Vallinath lamented, “The situation both domestically and internationally is very bad. Every mill is stopping some spindles and reducing production due to lack of demand and falling prices. This is so despite cuts in raw material prices also. Until international financial turmoil stabilizes and shows slight improvement nothing can be said.
"We need to see if there will be a recession in all the other countries and if so, to what extent. We also have to see whether this will result in recession in India. Though my personal view is that, in India there will be no recession but only slowing down of growth which will have a lot of impact on the economy and jobs.”
The President Finance, showing his concern, further stated, “Textile industry has not been performing so very well even when the economy was booming for the last four years. Now with slow down of growth in India and likely recession in the US and other EU countries looming large on the horizon, the industry future in the immediate term is not looking too rosy.
“Governments across the world are taking actions but they will take considerable time to show results in the aftermath of the magnitude of what is happening currently.”
However, it is expected that falling rupee value against the US Dollar might just help to regain Textile exporter's position that was lost last year due to appreciation of Indian currency.
India is also feeling the ripple effects of this international turmoil. After a steep growth for quite some time, country's economy is now witnessing a slump. High inflation rate and wavering industrial growth is making the life of industrial people miserable.
Mr V Vallinath, President (Finance), Visaka Industries, shared his precious view point with Fibre2fashion regarding the current scenario of the textile industry both in the domestic and international arena.
Mr Vallinath lamented, “The situation both domestically and internationally is very bad. Every mill is stopping some spindles and reducing production due to lack of demand and falling prices. This is so despite cuts in raw material prices also. Until international financial turmoil stabilizes and shows slight improvement nothing can be said.
"We need to see if there will be a recession in all the other countries and if so, to what extent. We also have to see whether this will result in recession in India. Though my personal view is that, in India there will be no recession but only slowing down of growth which will have a lot of impact on the economy and jobs.”
The President Finance, showing his concern, further stated, “Textile industry has not been performing so very well even when the economy was booming for the last four years. Now with slow down of growth in India and likely recession in the US and other EU countries looming large on the horizon, the industry future in the immediate term is not looking too rosy.
“Governments across the world are taking actions but they will take considerable time to show results in the aftermath of the magnitude of what is happening currently.”
However, it is expected that falling rupee value against the US Dollar might just help to regain Textile exporter's position that was lost last year due to appreciation of Indian currency.
Fibre2fashion News Desk - India
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