The textile value chain, particularly the cotton-based manufacturing value chain, in India is facing liquidity issues due to slowdown in demand, according to Indian Texpreneurs Federation (ITF). If the situation continues, there may be a need for converting short-term loans in textile manufacturing sector to long-term.
Ludhiana, August 20, The textile industry is passing though its worst phase in the past decade, said Munish Bagrodia, president, Northern India Textile Mills Association (NITMA).
Export earnings in July increased by 8.55 per cent, totalling USD 3.88 billion, compared to the same month in the previous fiscal year, thanks to higher shipments of apparel products that registered a growth of 9.7 per cent in the first month (July) of FY 2019-20.
Reserve Bank of India Governor Shaktikanta Das on Monday said the time had come to formalise the linking of lending rates on new loans to external benchmarks like the repo rate.
The Indian rupee opened lower at 71.51 per dollar on Tuesday against previous close 71.43 yesterday.
New rules have been implemented to ensure companies pay MSMEs on time. The guidelines added that the ministry will reserve the right to penalise defaulting entities.