Textiles industry seeks loan rejig, Retail News, ET Retail

New Delhi: The textile industry has pitched for a one particular-time loan restructuring, citing a 25-50{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} fall in general demand from customers in FY21 because of to the Covid-19 pandemic. The Confederation of Indian Textile Marketplace has created to Reserve Financial institution of India governor Shaktikanta Das, saying 25{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} of the textile mills and garment units might witness long lasting closure in the recent scenario, throwing several lakhs of persons out of careers.

“Impact of Covid-19 has damaged the back again of the textile industry as it is a reduced-margin, capital-intense industry,” it claimed in a letter found by ET. Presently, the industry is underneath great money pressure because of to large losses endured given that the onset of Covid-19, it claimed.

The plea comes in the backdrop of the banking sector producing a sturdy scenario for such one particular-time loan restructuring, apprehensive of a rise in non-accomplishing property because of to Covid-19-induced pressure.

Some policymakers have also backed the restructuring plan for sectors worst strike by the pandemic, like hospitality, tourism, aviation and development. CITI lamented that textiles was not component of this checklist. The size of India’s textile and garments industry was approximated at $162 billion in FY19, like about $37 billion in exports.

The industry has the opportunity to get to $350 billion like $one hundred twenty five billion in exports and make further careers for 30 million persons by 2024-25, in accordance to CITI. As for each the letter, the textile industry has struggled for additional than 3 a long time and is possible to shrink for the future two a long time.