Textile sector sore over lack of export sops
The government proposal to raise allocation for Centrally-sponsored Technology Upgradation Fund (TUF) by around 20% will give a boost to modernisation and expansion of textile industry in the state, experts in textile and cotton marketing said here on Friday. TUF gives textile units a 5% interest reimbursement for modernising and expanding capacity. But the textile industry is in a sombre mood as finance minister gave no sops to boost textile and cloth exports. This will ultimately lead to cut in textile production, leading to substantial increase in unemployment, they felt. As the steady appreciation of Indian currency had a negative effect on textile and garments export, the industry was expecting some relief by way of subsidising the exports to meet challenges from Pakistan and China. In the current financial year, the biggest challenge for textile and clothing industry, which is highly labour-intensive, was the run-away appreciation of Indian rupee, said PD Patodia, chairman, Confederation of Indian Textile Industries. "We were expecting some more relief for exports, which has not materialised. This will affect the already struggling industry," Patodia said. "Nothing much has been given to textile industry," said a senior official of Vardhman Group of textile mills. Indian rupee had appreciated almost 14% against US dollar compared to Chinese and Pakistan currencies appreciating only 6.4%, adversely affecting textile exports from India. Any decrease in India's textile exports will benefit China and Pakistan, analysts said here.