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Indian textiles sector sees job losses due to slowdown
13 Jun '12
1 min read
The Indian textiles sector has witnessed job losses during the past few years owing to closure of several manufacturing units following economicslowdown, the Apparel Export Promotion Council (AEPC) has said.
The AEPC estimates that around 4.5 million jobs were lost in the textiles sector during the last two years, which is more than 10 percent of the approximately 40 million people employed in India’s textiles industry that includes weaving, spinning, apparel, handloom and handicraft sectors.
During the past three years, more than 125 cotton and man-made fibre textile mills have closed down in the country, AEPC said.
In addition to slowdown in the US and Europe, which affects exports, the Indian textiles sector is also bearing high cost of credit and increase in raw material prices.
The Indian textiles sector is estimated to have a loan burden of about Rs. 1000 billion and the industry had requested the Reserve Bank of India to restructure the loans. However, the Government has decided to restructure loans worth Rs. 350 billion, providing some relief to the industry.
Fibre2fashion News Desk - India
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