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Union Government decided to streamline 35000 Crore Rupees Debt for Textile Industry

Economy Current Affairs 2012. The Union Government of India on 29 May 2012 decided to streamline debt worth 35000 crore rupees to rescue cash-strapped textile industry

May 30, 2012 13:57 IST

The Union Government of India on 29 May 2012 decided to streamline debt worth 35000 crore rupees to rescue cash-strapped textile industry. The industry is facing a mounting debt given the sudden fall in product prices after two years of a steady rise in raw material costs. The textiles industry of the country is under an outstanding debt of 155809 crore rupees.

The fresh package given to the textile industry will help the industry to continue giving employment to over 11 million workers and also to meet export target of 17000 million dollar set for the year 2012-13.

The apparel export sector of the country has been passing through a phase of crisis for the last three years. The worsening situation has its root in the economic uncertainty in the US and Euro zone countries, volatility in foreign exchange, increase in yarn prices and increasing interest rates.