Chinese devaluation could worsen local textile sector woes

Reacting to China's currency devaluation, R K Dalmia, Chairman, Texprocil -- Textile Export Promotion Council -- stated that this sudden move on the part of China will have an adverse impact on India's exports of textiles and clothing, which are facing already sluggish growth due to recessionary conditions in global markets

Dalmia stated that the Government has not yet announced the interest rate subvention of 3% which has been pending despite sanction of funds for this purpose by the Finance Ministry.

In fact situation is so worsening that spinning mills in north and southern India were contemplating shutdowns which will result in lay-offs and job losses. This could get worst. In view of the crisis situation facing the textile industry, Dalmia appealed to the Government to clear the dues of the industry under the TUF Scheme, and release additional funds.