Ahmedabad, Nov 25 (UNI) Union Textiles Minister Shankersinh Vaghela today expressed hope that the current slowdown in the textiles sector will not last very long and the situation should improve by mid next year.
He said his Ministry has recommended to raise technology upgradation aid for beleagured textiles sector from Rs 300 crore to Rs 2,000 crore.
Around five lakh employees of the textiles industry will lose jobs due to global recession. Exports of the textile industry has received a severe setback because of the global meltdown.
The Minister said the decrease in the international exports had led to halting of production in the textiles units. This had made export-oriented production unviable for these units and hence the cut in the jobs of around five lakh employees.
Mr Vaghla said the government was working on a package for the distressed export sector. The package may include cut in interest rates and increased credit for exporting firms.
Measures being considered include increasing the drawback and DEPB rates (schemes under which exporters get input duty and import duty refunds) and giving a four per cent interest subvention or subsidy to exporters.
Import of textiles by the US from India declined by 1.56 per cent in the January-August period of the current calendar year. The US, EU and Japan constitute about 60 per cent of India's textile export market.
UNI HT SSS SBA PM1905