India's textile exports to US fall

India's textile and clothing exports to the US have declined by over 14 per cent at $1.7 billion in the first four months of 2009 compared to the same period in 2008 due to slump in demand.

India's textile and clothing exports to the US declined by 14.09 per cent at $ 1.78 billion in January-April 2009 compared to $2.07 billion in the same period last year, Minister of State for Textiles Panabaaka Lakshmi said in a written reply to a question in Rajya Sabha.

She said the government announced two stimulus packages on December 7, 2008 and January 2, 2009 to boost India's exports, including textile.

The measures announced under these packages include additional allocation of Rs 1,400 crore (Rs 14 billion) to clear the entire backlog of Technology Upgradation Fund Scheme (TUFS), all handicrafts to be included under Vishesh Krishi and Gram Udyog Yojana and interest subvention of 2 per cent upto September, 2009.

Meanwhile, in the Budget 2009, the government extended interest subvention scheme up to March 2010, besides allocating funds worth Rs 3,140 crore (Rs 31.40 billion) under TUFS and Rs 397 crore (Rs 3.97 billion) for the Scheme for Integrated Textile Park (SITP).

Having grown by over 11 per cent in the first six months of 2008-09, the textile exports started falling in October ending the fiscal with overall decline of 10 per cent at $20 billion.