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Indian textile industry seek government aid

A revival of demand in Europe and US is foreseen by the end of this financial year. And this has prompted Indian textile industry to press the government to create a conducive environment for the sector. As of now, the sector is not sufficiently prepared to meet demands. D K Nair, Secretary General, Confederation of Indian Textile Industry (CITI) says since the global slowdown demand from India’s major markets dipped considerably. However, the US is on revival path. As for Europe, the Greece problem has receded and the economy there is expected to get better in the coming quarters. Thus, the end of the financial year should see textile demand go up substantially.

The textile industry in the country has not been doing well and the present problems affecting cotton and cotton yarn due to changing Chinese import policy has led surplus stocks, which has added to the problems. Lower offtake has forced many spinning mills to have lesser number of shifts and some have even closed down as China is the largest importer of cotton and cotton yarn. Besides, Indians exporters have to pay 16 per cent import duty while shipping to Europe, which is its largest market, in the case of apparels and garments. Competitors, such as Pakistan, Vietnam, Cambodia, meanwhile pay zero per cent duty. If India signs a free trade agreement with Eurozone, Indian exporters would grow significantly. Nair says that industry has been asking the government to move forward on this for some time now.

 
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