Home / Knowledge / News / Textiles / FICCI paints grave scenario in meeting with Cabinet Secretary
FICCI paints grave scenario in meeting with Cabinet Secretary
18
Dec '08
Mr K M Chandrasekhar, Cabinet Secretary, today called FICCI members to discuss the measures to stimulate the growth in Indian Economy. The FICCI delegation led by Sr Vice President Mr Harsh Pati Singhania met the Cabinet Secretary and forwarded a comprehensive note (copy attached).

The discussion ranged across all sectors. For the textile sector the following was discussed:-

Textile Sector:
The highly labour intensive and export oriented textiles and clothing (T&C) industry of India has been facing serious problems continuously for the last two years. With direct employment of around 35 million workers and exporting more than half of its total production, the industry is extremely important to the economy and vulnerable to fluctuations in both costs of production and demand trends.

Problems:
The present crisis in the industry started with the steep and fast appreciation of Indian rupee against US dollar from the beginning of 2007. Before rupee started depreciating, cotton prices sky rocketed in the international and domestic markets, registering an increase of over 40 percent in India within a period of less than 6 months ending September 2008.

Increasing interest rates and steep power cuts are the other issues that our T&C industry has been grappling with for several months now. Tamil Nadu accounts for around 40 percent of India's spinning activity and over 25 percent of our total T&C activities. With a 40 percent power cut, substantial reduction of T&C production is likely in Tamil Nadu this year. There are also power cuts of varying percentages in many other major textiles producing States.

However, the global economic crisis which has severely impacted our major markets of the USA, EU and Japan in recent months is undoubtedly the most damaging of the series of problems faced by this industry. That the global crisis has started impacting our own economy only adds another dimension to this problem.

Impact on Production:
The impact of the global and domestic economic slowdown is now clearly discernible in the performance of the industry. While costs of raw materials and inputs remain uncompetitive in comparison to competing countries, the output and profitability of the industry have taken a nose dive in recent months.

Wholesale Price Index based rate of inflation for the textiles group for the week ending 29.11.2008 was 10.8 percent, whereas for raw cotton the inflation was 21.4 per cent during this period. Index of Industrial Production (IIP) data released by the Central Statistical Organisation (CSO) show a dismal picture of textile production.

In fact, the decline in IIP for textiles started from June this year onwards. After a reasonable growth of 6.1% in May 2008, the growth in the Index declined to 4.5% in June, -1.8% in July, -4.5% in August, -4.9% in September and -7.1% in October 2008. By now, the cumulative position has alsobecome negative.


Must ReadView All

Coats acquires yarn manufacturer Patrick Yarn Mill

Textiles | On 12th Dec 2017

Coats acquires yarn manufacturer Patrick Yarn Mill

Coats, the world’s leading industrial thread manufacturer, has...

India’s garment imports from Bangladesh up 56% post-GST

Apparel/Garments | On 12th Dec 2017

India’s garment imports from Bangladesh up 56% post-GST

India has imported $87.4 million worth of readymade garments from...

Courtesy: Badger Sportswear

Apparel/Garments | On 12th Dec 2017

Badger Sportswear acquires Alleson Athletic

Badger Sportswear, a leading manufacturer of athletic apparel and...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Rupa Sood and Sharan Apparao
Nayaab

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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

December 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
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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