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.
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.
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.
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.
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
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.