New Delhi: Global rating agency Fitch today
retained its negative outlook for the Indian textile industry
saying exports could recover only with an improvement in
economic activities.
"The outlook for the sector (textile) remains negative,
with prospects of recovery in the export segment only likely
to accompany a general economic recovery," it said.
Domestic garment exporters reported production cuts which
in turn created capacity under-utilisation for yarn producers,
it said.
Textile exports fell by 10 per cent to about USD 20
billion in 2008-09 due to slump in demand in the US and
Europe, the main markets for Indian products.
Earlier this month, the government had provided Rs 2,546
crore under a subsidy scheme to industry that is seen as
stimulus to the sector, impacted by the global downturn.
"This is expected to ease liquidity pressures...," it
said.
It added that the synthetic textile segment could see a
rise in raw material prices because of steadily rising crude
oil prices, while bearing the burden of an increased excise
duty, it added.
Bureau Report
First Published: Monday, August 17, 2009, 21:43