The global economic slowdown is going to make things worst for textile sector in Gujarat. Around 500,000 to 700,000 workers have already lost their jobs and many more may do so in the days to come.

"The textile industry is dying and it requires increased help from banks," Ram Krishna Mundra of Mahendra Tora Pvt Ltd said on November 26, while speaking at a seminar on 'Present Economic Scenario and Its Impact on the SME Sector in Gujarat organised by State Bank of India in Ahmedabad.

Power loom owners and weavers have been hit hard during the recent times. "The textile industry should be given an electricity duty subsidy to overcome the current crisis," he demanded.

Speaking at the seminar, Vimal Ambani, president-Gujarat chapter, Confederation of Indian Industry, said that there is need for a unified tax structure in the country to further strengthen the industry. "There should not be different Value Added Tax rates in different states. Similarly, rationalisation of various taxes such as excise, customs and other central taxes should be there to make our industries competitive at time when entire world is gripped by a slowdown," he added.

Small and medium enterprises are not provided sufficient funds for their projects. "SMEs get Rs 4 crore (Rs 40 million) when they demand a Rs 5 crore (Rs 50 million) loan. They should be given Rs 6 crore (Rs 60 million) if they ask for Rs 5 crore (Rs 50 million). The time has come to take bold steps," he suggested.