High Input Costs Hit India'S Textile Exports.

In the 08 year, the textile and clothing industry in India predicted that exports will decline again, which is due to global demand decline and higher input costs, which offset the depreciation of the India rupee and the US dollar.

Despite many positive factors in India, including the rise in China's input costs, the pfer of business from neighbouring countries such as Pakistan, and the decline of rival countries in the US market share, India's textile and clothing industry is still dragged down by low demand and high input costs.

Since April 08, exports have declined by 30%, and production has shrunk by 20-30%.

This led to the closure of several units in the main centres of Rupp, Bangalore and Delhi, resulting in thousands of workers losing their jobs.

The decline in demand for clothing and textile products in the United States and European countries has led to panic among manufacturers. Manufacturers have cut production in stages.

Half of India's textile and clothing exports are exported to the United States and Europe.

Last year, the export of India's textile industry reached US $22 billion, less than US $25 billion 60 million.

If the order situation has not changed, the export of India will drop again this year.

In the third quarter of the current fiscal year, the number of orders for major export units shrank by 15-20% compared with the same period last year, while domestic sales fell by 10-15% compared with the same period last year.

The India Federation of industry and Commerce and the India Federation of industry predict that the output of the entire manufacturing sector will drop by about 10-40%, and that more workers may be unemployed in the near future for management costs.

However, the government announced a stimulus policy of 14 billion rupees for the technical pformation fund of the textile industry.

But industry experts say that the adjustment of cotton prices can be of greater help.

India Garment Manufacturers Association believes that the tariff rebate rate should at least increase by 3-4%, so that industries can be more competitive.

Even if global cotton prices fell by 25-30%, the lowest supporting price in India was still 40% higher than the previous year, which affected the competitiveness of the industry.

In September, cotton prices rose by 40% to 2850 rupees / weight, which is 20% higher than international prices.

Industrial analysts say India's input costs, especially cotton prices, have started to fall from the peak, but still higher than the same period last year.

India's direct competitor is facing pressure from high input costs, labor, electricity, currency and low export subsidies, leading to India's competitiveness growth.