The textile export industry is facing its biggest crunch ever as this labour intensive industry is expected to shed around 350,000 workers on account of rupee rising significantly. Experts believe it could be very little considering that most relief measures demanded by textile exporters are all outside the ambit of the exim policy.Textile players want state levies that vary between 6-7 per cent of overall exports to be removed or reduced.
Since the power consumption is high and power costs are much higher as compared to other countries they also want cost of power to overall expenditure be reduced.Exporters also demand relaxation in labour regulations so they don''t have to bear the burden of the labour force during off season.
But these demands are not new and have been a hurdle to the industry catapulting the momentum of its downfall as an effect of the appreciating rupee. In 2001, textile exports of India were at $10.47 billion or 23.62 per cent of overall exports. However, in 2006, exports have fallen to 15.40 per cent. The government is also expected to extend a scheme of IT exemption for 100 per cent exporters which is expiring in 2009.Many also expect an increase of the duty drawback scheme to 6 per cent from the current 4 per cent.An appreciating rupee has crippled the textile export industry but now with the rupee stable for the last four months other problems have surfaced including state levies, power costs and labour regulations.
Since the power consumption is high and power costs are much higher as compared to other countries they also want cost of power to overall expenditure be reduced.Exporters also demand relaxation in labour regulations so they don''t have to bear the burden of the labour force during off season.
But these demands are not new and have been a hurdle to the industry catapulting the momentum of its downfall as an effect of the appreciating rupee. In 2001, textile exports of India were at $10.47 billion or 23.62 per cent of overall exports. However, in 2006, exports have fallen to 15.40 per cent. The government is also expected to extend a scheme of IT exemption for 100 per cent exporters which is expiring in 2009.Many also expect an increase of the duty drawback scheme to 6 per cent from the current 4 per cent.An appreciating rupee has crippled the textile export industry but now with the rupee stable for the last four months other problems have surfaced including state levies, power costs and labour regulations.
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