Global economic slowdown is going to make things worst for textile sector in Gujarat. Around 5 to 7 lakh workers have already lost their jobs and many more are feared to lose their jobs in days to come.
"Textile industry is dying and it requires increased help from banks," Ram Krishna Mundra of Mahendra Tora Pvt Ltd today said while speaking at a seminar on "Present Economic Scenario and Its Impact on SME Sector in Gujarat" organised by State Bank of India (SBI) in Ahmedabad.
Power loom owners and weavers have been hit hard during the recent times. "Textile industry should be given electricity duty subsidy to overcome current crisis," he demanded.
Speaking at the seminar, Vimal Ambani, president-Gujarat chapter, Confederation of Indian Industry (CII), said that there is need for unified tax structure in the country to further strengthen the industry. "There should not be different Value Added Tax (VAT) rates in different states. Similarly, rationalisation of various taxes such as excise, custom and other central taxes should be there to make our industries competitive at time when entire world is gripped by slowdown," he added.
Small and medium enterprises (SMEs) are not provided sufficient funds for their projects. "SMEs get Rs. 4 crore when they demand Rs. 5 crore loan. They should be given Rs. 6 crore if they ask for Rs. 5 crore.The time has come to take bold steps," he suggested.
