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Textile sector faces up to Rs 1,500-cr losses

Jul 28, 2018
Textile sector faces up to Rs 1,500-cr losses

The ongoing indefinite strike of transporters has cast a shadow on the $130-billion textile industry, which is facing a staggering loss of up to Rs 1,500 crore. If the strike continues, the industry will have to curtail production, and it will affect the fund flow, credibility and reputation on the export front as India is one of the largest exporters of garments and other textile products.

The knitwear export has been declining since October 2017, and in the second half of 2017-18, the decline was to the tune of 21 per cent as compared to the corresponding period in 2016-17. In the first quarter of the current financial year (2018-19) also, the export has declined by 21 per cent as compared to the same period in 2017-18, a data compiled by the industry said.

With the festive season fast approaching coupled with global order commitments by the exporters, the industry has not only lost a good amount of foreign exchange, but also will soon lose the market to competitors such as Indonesia, Bangladesh, Vietnam, Cambodia and the latest entrant Myanmar too, said Sanjay K Jain, chairman, Confederation of Indian Textile Industry (CITI).

“A staggering Rs 1,200 crore to Rs 1,500 crore export orders are lying idle due to transporters strike across the nation. In addition to this, there are hardly any movement on the domestic front,” he said.