Impact of recession is quite visible on all the economies of the world. Countries, those were booming in the past few years are now badly disrupted because of global financial downturn.
It seems miseries of exporters have taken a never ending route. Last year, they were making losses because of rupee appreciation and now receding export orders from various markets have wiped out their hopes for goods.
Speaking exclusively to Fibre2fashion, Mr Nikhil Sen, Head of Strategy and International Business, GHCL said, “The US has always been a driving force of textile industry in the global market scenario, hence a downturn in the US market, has led to a slowdown in demand from US and European market. Industry has also seen a dip in revenue due to less export and increase in inventory costs. In the coming days this downturn will also make a dent on the consumer consumption and will raise pricing issues in the global market.”
To cope with the situation, few steps, if taken, could definitely have some positive effect on the industry. “Primarily our Government should take steps to stabilize the situation. Focus on domestic market as well as unorganized sector is also needed. Government should decrease the loan interest rate for export purpose and Subvention on export business”, Mr Sen opined.
Discussing the future of textile and apparel industry, Mr Sen stated, “The long term future of the textile and apparels industry is very bright. The textile industry in India is substantial and largely diversified and plays an important role in the terms of revenue generation in Indian economy. The significance of the textile industry is also due to its contribution in the industrial goods production and employment. Currently, this industry is the second largest employment provider after agriculture and provides employment to more than 30 million people.”
It seems miseries of exporters have taken a never ending route. Last year, they were making losses because of rupee appreciation and now receding export orders from various markets have wiped out their hopes for goods.
Speaking exclusively to Fibre2fashion, Mr Nikhil Sen, Head of Strategy and International Business, GHCL said, “The US has always been a driving force of textile industry in the global market scenario, hence a downturn in the US market, has led to a slowdown in demand from US and European market. Industry has also seen a dip in revenue due to less export and increase in inventory costs. In the coming days this downturn will also make a dent on the consumer consumption and will raise pricing issues in the global market.”
To cope with the situation, few steps, if taken, could definitely have some positive effect on the industry. “Primarily our Government should take steps to stabilize the situation. Focus on domestic market as well as unorganized sector is also needed. Government should decrease the loan interest rate for export purpose and Subvention on export business”, Mr Sen opined.
Discussing the future of textile and apparel industry, Mr Sen stated, “The long term future of the textile and apparels industry is very bright. The textile industry in India is substantial and largely diversified and plays an important role in the terms of revenue generation in Indian economy. The significance of the textile industry is also due to its contribution in the industrial goods production and employment. Currently, this industry is the second largest employment provider after agriculture and provides employment to more than 30 million people.”
