New Delhi: India’s textile and clothing exports to the US have declined by over 14% at $1.7 billion in the first four months of 2009 compared to the same period in 2008 due to slump in demand.
India’s textile and clothing exports to the US declined by 14.09% at $1.78 billion in January-April 2009 compared to $2.07 billion in the same period last year, minister of atate for textiles Panabaaka Lakshmi said in a written reply to a question in Rajya Sabha.
She said the government announced two stimulus packages on 7 December, 2008 and 2 January, 2009 to boost India’s exports, including textile.
The measures announced under these packages include additional allocation of Rs1,400 crore to clear the entire backlog of Technology Upgradation Fund Scheme (TUFS), all handicrafts to be included under Vishesh Krishi and Gram Udyog Yojana and interest subvention of 2% upto September, 2009.
Meanwhile, in the Budget 2009, the government extended interest subvention scheme up to March 2010, besides allocating funds worth Rs3,140 crore under TUFS and Rs397 crore for the Scheme for Integrated Textile Park (SITP).
Having grown by over 11% in the first six months of 2008-09, the textile exports started falling in October ending the fiscal with overall decline of 10% at $20 billion.
As per estimates, slowdown in the US and the European Union, which account for 60% of the country’s textile exports, has caused the sector go through rough times in the form of falling shipments and job loss for over five lakh people in the last few months.
The industry is the second largest employer after agriculture, employing 35 million people.