INDIA: Indian textile sector on ventilator
As the temperature of the recession furnace shoots up, textile sector is feeling the heat of meltdown. Until July 2008, Indian textile sector was considered as the 'sunrise sector' that was positively expected to generate employment opportunities for 17.37 million people upto 2012. But by the end of 2008, the situation turned 'topsy-turvy' the same now becoming a 'sunset sector'.
Export figures for July-September witnessed a dip of 35%. Deepening the scars of the slump, the sector, which was regarded as the second largest in the country had laid-off 7 lakh workers in a span of six months. With mounting pressures of the economic slow down, it is feared that more 12 lakh jobs will be axed within the next three months.
Packages declared by the Government are believed to be insufficient when compared with competing countries like China and Pakistan. To protect the textile industry a clear cut guideline is essential for repayment of loans, along with a special package for working capital to manage the abrupt increase in the minimum support price for cotton.
Added: March 12, 2009 Source: Agencies