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India Textile Industry May Again Lay Off 500 Thousand Workers

2008/11/22 0:00:00 103

So far this year, the textile industry in India has cut 700 thousand workers, and the textile industry is likely to cut another 500 thousand workers, based on a decline of 1.5% in textile business.

In view of this, the India Textile Industry Federation (CITT) has discussed with member units to avoid layoffs again.

Mr. Nair, Secretary General of the India Textile Industry Federation, said that because of the 2% decline in commerce this year, the textile industry has only 700 thousand people.

By March 2009, textile business is expected to drop by 1.5% again, so it is likely to lay off another 500 thousand people.

Mr. Nair said there was nothing we could do about the previous layoffs. We are meeting with the government to take specific measures to shift the layoffs again.

Exports of the textile industry contributed about 17% of India's total exports, and India's textile industry has already cut 4% of its packaged credit interest rates.

However, the Reserve Bank of India issued a notice that the interest rate subsidy was terminated prematurely from September 30, 2008, and the original expiry date of the subsidy was March 31, 2009, so exporters had to obtain credit at market interest rates.

India's textile exporters are subsidized by the credit interest rate on the basis of 180 days before shipment and 90 days after delivery.

This package credit interest rate subsidy will allow a low interest rate of 4%.

This kind of credit is used for mobile quality inspection to help deal with the delivery before the final payment.

As interest rates continue to rise, exporters have to get credit at previous market interest rates.

 

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