US financial crisis has negative impact on Indian textile industry

The U.S. financial crisis has caused global market turmoil. Since the United States is the world’s largest importer of textiles and clothing, the impact of the U.S. financial crisis will be greater, and the European Union may also be affected.
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​ ​ ​ India’s textile industry exports will be affected in a lasting way. According to the latest assessment of the Indian textile industry, India’s textile and apparel exports are expected to reach US$24.6 billion in 2008/09, an increase of 20% from US$20.5 billion in the previous year, but far lower than the US$31.17 billion export target set by the government this year.
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The financial crisis will have a negative impact on the Indian textile industry. If the U.S. and European economies remain in a downturn for a long time, the real effects will be felt, and consumer spending in these countries will be affected. Therefore, not only will the demand for textiles in India decrease, but the textile industry will also face price pressure.
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For the Indian textile industry, the United States and Europe are two different markets. The United States is the largest market for Indian textile exports, and Europe is the market where Indian textile export prices are higher. However, Europe also demands higher quality products. However, the scale of India’s exports to Europe cannot be compared with that of the United States. Therefore, Indian companies cannot ignore the US and European markets. To utilize and fill production capacity, the Indian textile industry must seize large-scale exports to the United States.
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The textile market cannot avoid the global business cycle. The global economic downturn has impacted the world textile market and slowed down consumption. The entire textile industry is facing price pressure, and the textile manufacturing industry is also feeling the pressure. They have begun to move production facilities from Europe to emerging economies. regions, such as Asia.