Recession effect In The Indian Textile Industry Life:-

Moreover, the impact of the global financial crisis was inevitable to fall on the Indian economy, resulting in drying up of investments in the country. Manufacturing sector will certainly see the direct impact of the crisis.


Before recession Indian exports to the US grew 15per cent and 20per cent in volume and value terms, respectively. Chinese exports on the other hand, have grown about 3.04per cent in value terms in the same period. Chinese exports of apparel also fell considerably by 12.30per cent, according to Cotton Textile Export Promotion Council (Texprocil).

So The Government is planning to set up 25 integrated textile parks with an aim to enhance the competitiveness of the textile industry. The Indian textile and apparel industry has a potential to grow to $110 billion by 2008.but it has effected by recession

But after recession The Indian textile industry rallied under declining domestic demand and high input costs in the current year. Drop in demand from external markets (like the US and Europe, both absorb nearly 50% of the total production) created panic among manufacturers who have started trimming production in a phased manner.

The future outlook of the Indian textile industry is predicted to remain gloomy for 2009 due to negative impact of the recession on international markets, said an international rating agency Fitch Ratings.
According to a Research analyst , “The global financial crisis has made the Indian textile industry to bleed white because it is driven by exports and the present scenario is likely to remain as it is until December 2009.And after that it will grow.