CITI demands proper policy support to rescue textile industry

Published: 31 Dec 2008 02:04:35 PST

To cope with declining demand in India and abroad, Confederation of Indian Textile Industry (CITI) has urged Government for proper policy support. CITI states that while the international credit crisis is beyond the reach of the Indian Government, the present crisis of the textile industry could have been prevented with proper policy support from the government. A major problem faced by the industry is the liquidity crunch, as the banks cannot extend loans and the interest rates are too high even if they do. R K Dalmia, chairman, CITI, said, "The textile and clothing industry that is the largest employer in India's manufacturing sector and one of India's largest exporting industries is currently going through a very tough time and unless remedial measures are immediately taken by the government, a large number of units will have to close, throwing lakhs of workers out of jobs."