India Textile Organization Reduces Debt And Revitalizes Textile Industry

And the clothing industry is the largest labor force most intensive industry, directly employed 35 million people, indirectly employed 45 million people, especially women and a large number of rural population.

Since October 2010, all fibers have seen unprecedented huge price fluctuations. Since January 2011, the demand for textile products in the global and domestic markets has declined, seriously affecting the entire textile value chain and causing great losses to textile enterprises.

As the price of cotton and yarn fluctuates, the textile and garment industry has lost more than 110 billion rupees.

In order to overcome the crisis, the South India Textile Mills Association (SIMA) has asked the government to restructure the debt of the textile industry since July 2011, in order to avoid textile enterprises becoming non-performing assets.

Although the government sympathized with the grim situation of the textile industry, the problem of repeated reorganization has become an obstacle.

In a press release, Mr. S. Dinakaran, chairman of the SIMA, said that according to the press release issued by the Ministry of textiles, the government had approved the restructuring of the textile industry in May 29, 2012 at a meeting with the finance minister in May 29, 2012.

The total debt outstanding of the textile industry is 1,55809 million rupees, and the restructuring proposal is 350 billion rupees.

In addition, the Ministry of finance also recommends that the Reserve Bank of India (RBI) short-term loan repayment be suspended for two years, and the special provisions of non-performing assets avoid asset reclassification and erosion of working capital, and convert into working capital for a period of 3-5 years in India.

(SIMA) the chairman said that the government's restructuring measures will maintain about 90 million jobs, including direct and indirect job opportunities, mainly textile and garment workers in rural areas, and below the poverty line.

He said that for the banking and textile industry, this is a win-win situation.