Already struggling with the low demands in the global market, the Indian textile industry’s situation is set to grow worse with the move made by the Chinese government to allow Yuan decline by 4 per cent against the US dollar. The decline in Yuan will lead to cheaper textile imports from China, heightening the competition for Indian textile manufacturers, as they will have to renegotiate their prices to compete with their Chinese counterparts.
The Indian Government is being looked up to for some boosting policies that will help the low-operating-margin textile sector to survive the competition. But the industry feels that the government has not been successful in doing so, as it has not yet announced the interest rate subvention of 3 per cent for textile sector, despite the already sanctioned funds by the Ministry of Finance.
