Gloomy times surround textile & apparel sector

18 Jun '09

2 min read

After a long winter of recession in the Indian economy, some sectors are showing the first green shoots of recovery. Positive performance of the equity markets is believed to be the main driver of this optimism. Latest survey by the Confederation of Indian Industry (CII) indicates slight restoration in manufacturing during January-March quarter, but there is also a decline in the Index of Industrial Production during March 2009.

The garment sector is experiencing mixed results. Rupee appreciation and the new Government are expected to be stable. Still, the country is likely to face new challenges like Indian apparel exports to US, EU, Japan, and other countries. US, the economists predicted a recovery from the deepest US recession with the country now seeing the jobless rate exceeding 8% through 2011.

G.S. Madan, President, Garment Exporters Association says, "The period 2009-10 onwards may be very difficult for the garment exporters with a declining trend in growth rate as the future reveals a gloomy picture due to weak demand from importing countries. Even the International Monetary Fund (IMF) has forecast future fall in the global economic growth".

Sakhthivel, President, FIEO says, "Exports are passing through a difficult phase in view of global slowdown." Rakesh Vaid, Chairman, AEPC says, "The global recession has significantly lowered the demand from the US and the EU. The US demand has declined by more than 3% while EU imports have stagnated."

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Fibre2fashion News Desk - India

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