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Indian textile exports have shrunk 11.3% resulting in cash losses for several mills. Exports of cotton yarn, fabrics, made-ups and handloom products have declined. Shipments of man-made products and jute products and carpets exports have also plunged. Smaller textile mills have suspended production. Slower growth in US and EU markets along with excess capacity and lack of cost competitiveness have impacted the industry. The industry is requesting import duty removal and financial support to address challenges and revive the sector.

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24 views

Final Group

Indian textile exports have shrunk 11.3% resulting in cash losses for several mills. Exports of cotton yarn, fabrics, made-ups and handloom products have declined. Shipments of man-made products and jute products and carpets exports have also plunged. Smaller textile mills have suspended production. Slower growth in US and EU markets along with excess capacity and lack of cost competitiveness have impacted the industry. The industry is requesting import duty removal and financial support to address challenges and revive the sector.

Uploaded by

mahikukreja5
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

Indian Textile

Exports Shrink,
Mills Facing Cash
Crunch
Introduction

• Overview of India's textile and apparel industry.


• Current challenges faced by the industry.
• Importance of textile exports for the Indian
economy.
Decline in Textile Exports

• Reduction in textile exports in by 11.3%


• Cash loss faced by several mills
• Suspension of production in South India
• Decrease in export of cotton yarn, fabrics, made-
ups, and handloom products
Impact on Different Product Categories

• Decline in shipment of man-made products


• Plunge in jute products and carpets exports
• Data shared by the Confederation of Indian Textile Industry (CITI)
• Worth of textile and apparel exports dipped from $1,736 million in June 2022 to
$1,624 million in June 2023
Factors Affecting the Industry

• Expectation of improved export of cotton products


• Suspension of production by smaller textile mills
• Slowdown in the U.S. and EU markets
• Excess capacity and lack of cost competitiveness
Potential Solutions and Relief Measures

• Free trade agreement with the UK


• Impact of duty-free access on garment and made-up exporters
• Current financial challenges faced by the industry
• Industry's request for import duty removal and financial support
Conclusion

 Importance of addressing these challenges for the industry’s


revival.
 Call to action for support and collaboration.
The impact of
Global interest rate
hikes on India’s
economy
Introduction

• The federal Reserve’s rate increase has sparked


widespread discussion.
• The European Central Bank follows suit with its
9th consecutive rate hike.
• India’s central bank faces a challenging situation.
Reasons for inflation in the US

• Supply disruptions due to covid


• Increase in spending capabilities due to covid led savings
and government cheques
• Contrary to expectations, the US economy grew at 2.4% in
the April-June quarter of 2023.
Capital Account Implications

Shrinking yield spreads


Not raising interest rates and foreign investors’ risk-
01 02
could lead to capital reward ratio
outflows.

Rising US rates and


Investors seek markets
03 04 narrowing rate gaps puts
5 with higher interest rates.
pressure on the RBI
PRESENT
You can enter a subtitle here if you need
it
Impact of a Stronger US dollar

• Stronger US dollar poses challenges for India’s


developing economy.
• Imported goods and services become more
expensive.
• Inflationary pressure due to the rising cost of imports
• Effects on trade balance
Factors aiding decision making

• Eurozone’s negative money supply and weakening


Inflationary forces.
• US Consumer Price Index (CPI) and Labour Market
cooling off.
• Decrease in headline inflation in India.
• Rise in automobile sales.
• Higher Industrial Production Index (IIP) numbers.
PRESENT
You can enter a subtitle here if you need
it
Prudent Fiscal Measures

Boosting economic Potential for Global attention


growth sustained towards ‘Make in
economic growth India’ slogan.

Domestic
Indian Government’s
manufacturing and
fiscal measures can
job creation
aid RBI’s economic
through ‘Make in
management.
India’.
Foreign direct
investment can offset Less impact of interest
short-term capital rate changes
movements.
Foreign
Direct
Investment
and Economic
Stability
Attraction of Foreign
Maintaining stability in Direct Investment
the economy (FDI)
THANK YOU
Made By :
Mahi
Yash
Sumedha
Anshul
Khushi Chandekar

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