Home / Knowledge / News / Textiles / Exports of textiles will continue to lag in current quarter -FICCI
Exports of textiles will continue to lag in current quarter -FICCI
21
Jul '09
High interest cost and fall in exports would continue to restrain the growth of Indian manufacturing sector in the quarter July-September 2009, according to FICCI Manufacturing Survey. Indian manufacturing sector is likely to witness more than a moderate growth with 8 out of the 10 sectors surveyed reporting not only positive but also high growth for July-September 2009 vis-à-vis same quarter last year.

The 8 sectors that are expected to witness high growth are Metal & Metal products, Machinery & equipment, Automotive, Chemicals, Leather, Electronics and Miscellaneous industry, reported FICCI Survey. The survey was carried out for the quarters April-June 2009 and July-September 2009 based on the responses received from over 250 firms from both large and SME segments.

FICCI Survey pointed-out that credit is still provided at interest rates as high as 16% making the Indian manufacturers totally uncompetitive globally. In case of sectors like textiles, metals, machinery and chemicals, firms reported that they were still borrowing at rates between 14 to 16%. Banks are reluctant to lend to SME manufacturers as many of them had earned losses in the previous year and hence banks are insisting on credit ratings for these borrowers. Not only this, respondents of FICCI Survey pointed-out that banks were asking for a higher value of collateral security than the sanctioned limit.

On exports front, FICCI Survey reported that 5 out of 10 manufacturing sectors are expected to witness fall in their export level in July-September 2009 vis-à-vis same quarter last year. These 5 sectors are textiles, metals, tyres, chemicals and miscellaneous industry. However, FICCI pointed-out that situation in quarter July-September 2009 for exports is slightly better than the quarter April-June 2009 in which 8 out of 10 sectors reported fall in their export levels.

Textiles sector continues to be a source of worry as most of the respondents in this sector felt that their production in quarter July-September 2009 would be lower than the last year, said FICCI. However, the fall in production seems to have bottomed-out in textiles sector in July-September 2009.

The Survey points-out a number of important suggestions for taking the manufacturing sector's growth to higher trajectory. These are: Increasing drawback rates for apparels & textiles from 8 to 14%; Withdraw increase in excise duty from 4% to 8% on man-made fibres; Increasing excise duty exemption limit to Rs.5 crore for SMEs; Reduce payment delays, with stringent penalties, for SMEs; Increase DEPB benefits for steel from 3% to 8%; Reduce custom duties for raw materials (not produced indigenously) of tyre and steel industry etc.

Click here to view more:

Federation of Indian Chambers of Commerce and Industry


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Larry L Kinn
Suominen Corporation

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

Robert Brunner
Devereux

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

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