Home / Knowledge / News / Textiles / Expect up to 40% production cuts in textile sector - FICCI
Expect up to 40% production cuts in textile sector - FICCI
10
Dec '08
Despite Government's stimulus package, Indian manufacturing sector is not likely to see any revival in its growth soon. According to FICCI Survey on Slowdown in Indian Manufacturing Sector, manufacturers in some of the major sectors like textiles, metal and metal products, machinery & equipments, leather and chemicals etc. have reportedly planned cuts in their productions ranging from 10-50% for the period November '08 to March '09.

This implies that growth of manufacturing sector could further slowdown in the coming months, if the current economic uncertainties continue. Even for the month of October 2008, FICCI Survey noted that sectors like textiles, metal and metal products, leather could see negative growth whereas sectors like chemicals, machinery & equipments would witness a positive growth.

Based on the responses received, the textiles, leather and metal sector are expected to clock negative growth of -3.9%, -13% and -30% respectively but sectors like chemicals and machinery will register positive growth of 5% and 17% respectively for the month of October 2008 (These figures are only indicative as they do not cover the entire sector).

FICCI noted that sectors like Cotton textiles, textile products and leather products registered negative growth in the month of September 2008 also. And metal products registered a negative growth of -16.7% in August 2008.

According to the survey, in the textiles sector, there has been a dip in production by 3.9 percent in October 2008 vis-a-vis October 2007. Production cuts can be expected to be between 10-40 percent in the next five months and employment downsizing could be in the range of nearly 15 percent.

FICCI Survey also observed that some units in sectors like textiles, metal and metal products, leather, jewellery could see downsizing of their employment level in the range of 10-30% in the next few months. However, sectors like machinery & equipment, chemicals and products may not see any loss of employment in the current scenario.

In terms of exports, FICCI Survey pointed out that exports of textiles, leather and metal products have plunged sharply in October 2008 vis-à-vis October 2007. Textile exports are expected to decline by around 10% in October 2008. Maximum impact is likely to be in the leather sector's exports as the respondents reported that on an average their orders have declined by 62% from abroad.

In order to boost the manufacturing sector growth, FICCI Survey has highlighted some of the measures that need to be implemented by the Government in its next package of fiscal stimulus. FICCI pointed-out that some of the major demands of the manufacturing sector remained unaddressed or were addressed partially only in the recently announced package by the Government.

Firstly, almost all the respondents of FICCI Survey emphasized that the interest rates were still high and the Government needs to further bring down the interest rates for Corporate Sector. Globally, credit is available to the industry at very competitive rates of 8 to 10% which is not the case in India. Secondly, the major demand of textiles industry to increase the duty drawback rates and interest subvention at 4% remain unaddressed or partially addressed by the recent package.


Must ReadView All

Textiles minister Smriti Irani lighting the lamp to inaugurate the 6th edition of the International Apparel and Textile Fair ‘VASTRA 2017’, in Jaipur. Courtesy: PIB

Textiles | On 22nd Sep 2017

Placement rate in textiles sector is 70%: Indian minister

The recent high growth of foreign direct investment (FDI) in the...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Textiles | On 22nd Sep 2017

Messe Frankfurt acquires Source Africa, ATF textile shows

Messe Frankfurt, one of the world´s leading trade show organisers,...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Larry L Kinn
Suominen Corporation

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Rupa Sood and Sharan Apparao
Nayaab

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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