Appreciation of Rupee taking toll on textile exports
Mumbai, Apr 27 (UNI) Chairman of the cotton textiles export promotion council (Texprocil) Prem Malik today said soaring of the Rupee to its highest level at Rs 40.66 per dollar, which has a direct bearing on export realisation, was contributing to a slowdown in exports.
Talking to reporters, Mr Malik said the profit margins in textiles and garment exports are relatively lower than other commodities. The appreciation in the value of the Rupee has thus already started blunting the competiveness of the Indian textile sector leading to declining exports in major markets like USA.
He said the target of USD 25 billon set for the textile and clothing sector for the year 2007-08 is unlikely to be achieved.
Mr Malik said the appreciation of Rupee is not only making exports from India highly incompetitive in world markets but has also resulted in exporting firms, losing money heavily, instead of making it.
Mr Malik said already the growing competition from low cost suppliers like China, Bangladesh, Vietnam, Indonesia has put severe pressure on prices.
He stressed the need for urgent measures to be taken by the government, failing which, its impact on the textile and clothing sector will be felt, leading to lack of new investments and no additional employment.
UNI