The spinning industry in India is seeking financial support to overcome challenges in the export market. The sector has faced a 50-70% drop in capacity utilization due to various factors including the Ukraine-Russia conflict, the Israel-Hamas war, an import duty on cotton, and issues related to Quality Control Orders on man-made fibers. The Confederation of Indian Textile Industry (CITI) has requested an extension of the one-year moratorium on loan repayments and the conversion of three-year loans into six-year term loans under the Emergency Credit Line Guarantee Scheme (ECLGS). CITI also called for financial assistance to mitigate the stress on working capital in the spinning sector and prevent job losses, sustain market share, and achieve export targets.
The spinning segment of the textile industry in India is currently facing a severe crisis. Cotton yarn exports have declined by 50%, overall exports of cotton textiles have dropped by 23%, and there has been an 18% reduction in total textiles and clothing products exports during the financial year 2022-23 compared to the previous year. The CITI is urging the government to provide support measures to help the industry recover.
The textile industry had previously received critical support worth Rs 16,920 crore under the ECLGS, which accounted for approximately 6% of the total disbursement of Rs 2.82 lakh crore as of September 30, 2022. However, the spinning industry is now in need of additional assistance to overcome the challenges it is facing in the export market.
The spinning industry plays a crucial role in the Indian textile sector and is a major contributor to the country’s export earnings. The industry has been impacted by various external factors, and the current crisis is hampering its growth and sustainability. The support measures requested by CITI, including the extension of loan repayment moratoriums and the conversion of loans, would provide much-needed relief to the industry and help it overcome the current challenges.
The spinning industry is an essential part of India’s textile industry and plays a significant role in the country’s economy. The sector has been hit hard by the Ukraine-Russia conflict, the Israel-Hamas war, import duties, and issues related to Quality Control Orders. The Confederation of Indian Textile Industry (CITI) has requested financial support to help the spinning segment recover. CITI is seeking an extension of loan repayment moratoriums and the conversion of loans under the Emergency Credit Line Guarantee Scheme. The spinning industry has experienced a significant decline in capacity utilization and exports. The requested support measures would provide much-needed relief to the industry and help it sustain its market share and achieve export targets.
