Textile Industry takes Re appreciation issue to PM
29 Nov '07
3 min read
Hit hard by the steep and fast appreciation of Rupee, the textile industry has requested the intervention of the Prime Minister of India to save the industry from the deep crisis that it is currently facing.
A delegation led by Shri P.D. Patodia, Chairman, Confederation of Indian Textile Industry met Prime Minister on 26th November 2007 and pointed out that textile sector had negligible import intensity and export accounted for more than half the production in the industry.
Thus the sector is the worst victim of Rupee appreciation. That the currency of competing countries have appreciated only moderately and even depreciated in some cases, makes the situation even worse.
Citing the impact of declining exports and resultant loss of jobs on the economy as a whole, the delegation requested Prime Minister to provide immediate relief to the industry at least through short-term measures in order to help it to sustain exports and survive. The following specific suggestions were made by the delegation to the Prime Minister:
• Levies at state government and municipality levels amounting to 6 percent should be returned on all exports of textile and clothing products. Alternatively, Duty Free Scrips may be introduced at suitable rates to compensate for the state levies.
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