ASSOCHAM seeks help for Indian textile sector
In a bid to revive textiles and garment industry, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has urged the government to increase its support for the sector.
While the weakening rupee has offered textile exporters some, power cuts and sluggish market conditions have continued to cause problems.
“[The] textile sector is at verge of again slipping back to stagnant phase. Thus, some more tax concessions should still be extended to textiles and garments so that India is able to retain its competitiveness, especially at time when these industries are required to keep pace with stiff competition, emerging from India’s neighbour,” said ASSOCHAM president, Sajjan Jindal. “While the 11th Five-Year Plan, targets 22% growth in Indian textile exports, the growth rate has decelerated from 16.6% in 2005-06 to less than 12% now. The orders for textiles and garments have substantially fallen especially from US, European Union and even ASEAN as their economies are under severe financial crisis.”
According to ASSOCHAM, India needs to change the direction of its exports from the US and Europe to regions in Middle East, Africa and Gulf nations. Only 12.5% and 9% of textile exports are currently directed towards Africa and Middle East, respectively. However, the association claims these could be substantially increased if the quality of Indian textiles and garments improves, and it believes this could be achieved if more incentives were available.
