Faced with declining growth in exports and pruning of jobs due to the rupee impact, the Confederation of Indian Textile Industry has asked the government to reimburse not only the central taxes but also the state levies.

"Under the difficult circumstances, we cannot be expected to export levies and taxes. While we get reimbursement of central taxes, the state levies add up to a tidy 6 per cent, which is quite a burden on the rupee hit exporters" CITI chairman P D Patodia.

India's textile exports amounted to $19 billion last year and the target for this fiscal was set at $25 billion. Exports declined by 18.25 per cent in April this year. "Going at the current rate, it looks as if we would be able to achieve $18 billion," Patodia said.

He said over 35,000 workers have already been rendered jobless because of increasing lack of competitiveness by Indian industry. "This figure could go up to 5 lakh during the current fiscal if immediate steps are not taken," he said.

Patodia said the pre and post shipment credit should be made available for the industry at 6 per cent and the post shipment credit should be extended from the present three months to one year. India's apparel exports for April may also decline by 17.83 per cent.

It is estimated that 6.2 lakh jobs will be lost in the garment sector during the year. Finance Minister P Chidambaram had blamed the exporters of adopting short-term attitude and cutting jobs despite the government giving them a Rs 5,000 crore (Rs 50 billion) package this year.