Textiles industry seeks loan rejig, Retail News, ET Retail
“Impact of Covid-19 has broken the back again of the textile business as it is a low-margin, cash-intensive business,” it claimed in a letter seen by ET. Presently, the business is below wonderful fiscal strain owing to significant losses endured considering that the onset of Covid-19, it claimed.
The plea arrives in the backdrop of the banking sector making a sturdy case for these kinds of one particular-time personal loan restructuring, apprehensive of a rise in non-undertaking property owing to Covid-19-induced strain.
Some policymakers have also backed the restructuring plan for sectors worst strike by the pandemic, such as hospitality, tourism, aviation and development. CITI lamented that textiles was not aspect of this record. The size of India’s textile and clothing business was approximated at $162 billion in FY19, such as about $37 billion in exports.
The business has the likely to access $350 billion such as $a hundred twenty five billion in exports and create further work opportunities for 30 million men and women by 2024-twenty five, in accordance to CITI. As for every the letter, the textile business has struggled for extra than three decades and is most likely to shrink for the upcoming two decades.