According to foreign news on January 6, the Indian Textile Mills Association jointly called on Indian Finance Minister Nirmala Sitharaman to pay more attention to the financial pressure on the spinning business of the textile industry.
Prior to this, the cotton spinning industry had experienced a significant downturn, and external factors such as the Russian-Ukrainian conflict and the Palestinian-Israeli war intensified this downturn.
Although the textile industry is an important contributor to the Indian economy, it also faces challenges.
The Indian textile industry is now facing a serious crisis. In the financial year 2022/23, cotton yarn exports fell by 50%, cotton textile exports fell by 23%, and textile and clothing exports fell by 23%. The volume decreased by 18% compared with the previous year.
The long-term economic impact of global conflicts, coupled with challenges such as an 11% import tax on cotton and issues related to Quality Control Orders (QualityControlOrders), have led to low capacity utilization It has dropped significantly, ranging from 50-70% in the past year.
This severe situation has put many spinning mills, especially small, medium and micro enterprises, under severe financial pressure, making them unable to repay debts and pay arrears.
In response to these challenges, the Cotton Mills Association sincerely urges the Finance Minister to recommend that the banking industry give special treatment to the textile industry and provide certain financial support measures.
These measures include extending the 1-year principal repayment period, converting 3-year loans under the Emergency Credit Line Guarantee Program into 6-year loans, and Provide necessary financial assistance to alleviate the pressure on working capital.
Rakesh Mehra, Chairman of the Federation of Indian Textile Industry, said: “We earnestly appeal to you to actively consider our above request to mitigate the unforeseen crisis plaguing the textile industry and prevent Hundreds of thousands have lost their jobs, maintain market share and achieve the envisaged export targets.”
This joint appeal emphasizes the urgency of addressing the financial challenges faced by the spinning industry, To ensure the continued growth and stability of the textile industry. The textile industry is a key pillar of India’s economic strength. </p
