Centre's Publicized Stimulus Package Failed To Bring Cheers
The government's much publicized stimulus package has failed to bring cheer to the textile industry, which contributes 4 per cent of our GDP. If the present trend continues 50,000 people could lose their jobs in this industry that has already seen thousands out of work.There are more than one lakh spinning such units in and around Coimbatore and Tirupur in Tamil Nadu. These small manufacturers say that the government's rescue package is targeted only at the big players and not the SMEs.They have now written to the Prime Minister seeking extra time to repay their loans.“Already 10,000 people have lost their jobs or have shut their small units. If the same situation continues, our families will come to the streets,” said G Soundararajan, President, South India Small Spinners' Association.For the knitwear industry in Tiruppur, these are difficult times. The city alone employs more than 4 lakh people and exports apparel worth Rs 10,000 crore.
“We will need income tax exemption for some years like some sectors and a flat interest rate of 7 per cent. If the government does not act, we expect that there will be a 25 per cent minus growth because of which at least 50,000 people could lose their jobs,” said Shaktivel, President, Tiruppur Exporters' Association. The apparel industry accounts for more than 4 per cent of the country's GDP. With other big textile manufacturing countries like China, Pakistan and Bangladesh facing a bigger crisis, the industry says this is the time to cash-in but only if the government acts on time.
