High interest, raw material cost hit textile industry

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The powerloom and handloom sector saw a decline in production by 3.1 per cent and 3.9 per cent, respectively, in 2008-09 over the year-ago period.

"Factors such as higher price of cotton, high interest rates, problems in credit availability and demand slowdown in major importing countries led to the decline in cotton textiles," the Survey said.

However, the hosiery industry saw a modest increase of 2.3 per cent and the mill sector registered a marginal growth rate of 0.8 per cent in the last fiscal compared to the previous year.