"Government's view on the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it" - Ronald Reagan, the 40th President of the United States.
With the recently announced budget, the apparel industry is still in a state of mirage. Yet again, the budget had little to offer for the sector. Without any further ado, read on what it has put forward for this financial year. Don't forget to take a glimpse of the economic survey which ideally goes hand in hand with the budget.
Overview of the Textile industry
The economic survey 2010-11, gives a detailed analysis of the economic situation of the country, over the past 12 months. The Gross Domestic Product (GDP) of India is estimated to have grown at 8.6 per cent in 2010-11 in real terms. Growth in the industrial sector was buoyant during the first two quarters (April-June, July-September) of the current financial year and is as follows:-
- Cotton textiles production grew by 10.1 per cent during April-November 2010-11 as compared to 3.6 per cent during April-November 2009-10.
- Jute textiles production has also recovered and grew by 6.8 per cent as compared to a decline of 16.7 per cent during April-November 2009-10.
- Textile products grew by 5.7 per cent during April-November 2010-11 as compared to 3.9 per cent during the corresponding months of the previous year.
- In the wool, silk and man-made fibres segment of textiles, growth has however, dipped to a mere 0.1 per cent during April-November 2010, as compared to 13 per cent during April-November 2009-10.
The overall production of textile fabrics increased by 1.9 per cent, during April-October 2010-11. This is a moderate performance when compared with the robust increase of 8.8 per cent during 2009-10. The decline in textile fabrics/cloth during the current financial year has been on account of comparatively lower growth rates in the production of mill, power loom and hosiery segments.
Originally published in Apparel India- March 2011