Powerloom sector shifts focus to EU on fears about US slowdown

BANGALORE: The powerloom sector in India is looking at alternate markets like Europe and the domestic retail story to minimise the impact of the economic slowdown in the US. ���The sector is facing the impact of the slowdown in the US which accounts for nearly 75% of exports. Value added products like home furnishings can bring us improved returns.

Textile exports from India have already declined due to the sudden appreciation of the Indian rupee against the dollar,��� said Mathivanan, chairman of the Powerloom Development & Export Promotion Council (PDEXCIL) who was speaking to the media on the sidelines of a buyer-seller meet organised by the council.

He said nearly 50% of the powerloom units in and around Karur, the major powerloom hub in Tamil Nadu had downed shutters.

Tamil Nadu has the second largest aggregation of powerloom units (five lakh units) compared to Maharashtra���s eight lakh units and 4.5 lakh units in Gujarat. Mr Mathivanan said that the Union Budget���s proposal to impose a countervailing duty of 8% on imported textile machinery would only see a fall in investment in this sector.

He said the move to declare Erode as a mega cluster in the powerloom sector was welcome. Union Budget - 2008 has declared Bhiwandi and Erode as mega clusters in this sector.

An investment of Rs 70 crore each has been earmarked for improving infrastructure in these two centres. Earlier in his opening remarks, NM Mugadur, the joint textile commissioner in the Union textile ministry said that the government was keen to promote marketing of quality fabrics.

���Meets like this one can help in fostering direct contact between the buyer and seller while eliminating the role of the intermediary. Karnataka with about 81,000 powerlooms accounts for about 4% of the powerlooms installed in the country,��� Mr Mugadur added. Karnataka���s textile commissioner Ashok Manoli was also present at the inauguration of the buyer-seller meet.