Textile exports fall by 2 pc in 2008-09 on financial crisis

New Delhi, June 7 (PTI) India's textile exports declined
by about 2 per cent in 2008-09 to USD 21.75 billion due to
slump in demand from global economies like the US and Europe
which are reeling under the impact of financial meltdown.

During 2007-08, the exports stood at USD 22.13 billion.

"The decline in exports of textile is due to less demand
from the US and European markets which are reeling under
recession," a Textiles Ministry official told PTI.

After growing at a healthy rate in the first six months
of the last fiscal, the textile exports started coming down
since October and ended the fiscal with an overall decline of
1.7 per cent.

Among the textile exports, the worst hit was handicrafts
which saw a decline of 48 per cent in 2008-09 followed by
cotton yarn and jute products which fell by 11.8 per cent and
9.5 per cent respectively.

The garment exports, however, grew by a moderate 4.6 per
cent to USD 10.13 billion during the previous fiscal.

As regards the textile exports target for the current
fiscal, the official said, "We are hopeful to maintain the
exports level of last year provided the economic conditions in
the western economies improve."

The textiles industry is the second largest employment
generating sector, employing over 35 million people.

As per estimates, slowdown in the US and European Union,
which account for 60 per cent of the country's textile
exports, has hit the sector hard with falling shipments and
job losses of around five lakh people in the last few months.
PTI RK
AM
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