labels: textiles
Textile workers to be hit hard by rupee rise: CII news
14 June 2007
New Delhi: The appreciation of the rupee would lead to stagnation in textile exports and lead to a loss of around 579,000 potential new jobs in 2007-08 alone, including the loss of 272,000 direct jobs in the industry and the balance in allied sectors, a study carried out by the Confederation of Indian Textile Industry (CITI) has said.

The report said that in the twelve-month period from June 2006, the rupee has appreciated by 12 per cent. It said that most textile orders placed in June last year will be delivered in the US this year and the appreciation will bring down the earnings of Indian exporters significantly.

A decline in exports, which is a distinct possibility at the moment, would affect employment in the sector and even lead to a loss of existing jobs, the study added.

Officials said direct employment generated from textile exports reduced by 57,618 in 2006-07 consequent to a slowdown in exports, the incremental employment in the allied industries suffered a loss of 65,820 jobs during the year.

The total direct employment in the textile industry as on March 2006 was estimated to be 33.17 million while the indirect employment generated was an even higher at 54.85 million.
According to recent estimates, the employment in the industry is expected to go up by 17.37 million over the Eleventh Plan period to touch 105.39 million by 2007-12.

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Textile workers to be hit hard by rupee rise: CII