India's restructuring of the textile sector

Lakshmi, India’s State Councillor in charge of textiles, said that the Indian Textile Industry Federation (CITI) reported that 122 companies had lost money in the first quarter of 2011-12 fiscal year in the 287 textile company party groups listed on the Mumbai Stock Exchange. , 166 companies had poor results year-on-year. According to reports, many companies find it difficult for them to repay their mortgages. Liquidity is difficult and they may not repay.

Cotton prices have experienced the highest volatility in the past 150 years. In April 2011, the price of cotton began to collapse and immediately affected the domestic market. In April-October 2011, cotton yarn production fell by 15% year-on-year, and fabric production decreased by 19% year-on-year. Textile factories faced higher-priced cotton stocks and could not pass this price to yarns and fabrics, because in April 2011, cotton prices suddenly dropped. This led to a decline in production and reduced utilization.

The Ministry of Finance set up a committee for this purpose and led the President of Baroda Bank, Malaya, to inspect the textile reorganization proposal. The committee confirmed that the shortage of funds in the textile sector was Rs. 1,468.85 billion.

A report of the committee recommended that the textile sector be restructured to reorganize the textile sector's liquidity and liquidity in a prudent manner. The government seeks international cooperation for investment. Foreign investment in the textile sector is automated.

The proposal was submitted to the Reserve Bank of India and reserved by the Reserve Bank of India.

The Reserve Bank of India proposes that the banking sector freely adjust any account, whether it is a standard account or a substandard account or there is a suspicious account.