Indian textile industry on the upswing

Written by:
Subscribe to Oneindia News

By Jehova G

Coimbatore, June 20 : Indian textile industry has regained confidence in the international market as China, the international leader in textile business, is going through recession.

The Indian textile production has reportedly increased in the past two months, as the textile industry in China is severely hit due to recession causing rise in labour charges, price of yarn, fabrics and garments.

Ranganathan, a textile industrialist says that the yarn exports have risen from 10 per cent to 25 per cent in the past two months.

Factors such as export market price being a little more than the domestic price and the dependence of global clothing companies on Asian countries like China, India, and Bangladesh has enhanced the hopes of the Indian textile industry. "We are getting good orders for our fabric. This rise in US dollar price a little bit is also motivating us to do the business in a healthy way," said Ranganathan.

Since 1990, China has been a major global player in textiles. The Chinese textile manufacturers have also globally captured majority of Indian textile business.

With direct and indirect support of Chinese Government to the textile industry, the industrialists were able to increase production, which supplemented with cheap labour and low price, helped them to multiply their international clientele.

"We need to maintain and manufacture high quality products. We have timely deliveries because India is recognised as major player in international textile market. So, if we maintain our competitiveness, we'll be able to regain some markets, we have lost to China," said K V Srinivasan, Chairman, South India Mills Association.

With the present slump in Chinese industry, various textile manufacturers have shutdown or have moved out of china, mainly due to rise in raw material costs, higher wages and also rise of Yuan against the US dollar.

The Yuan has been appreciati9ng in value since the second half of 2007 and has recently crossed seven to the US dollar, further shrinking the pay envelopes of the Chinese exporters.

Please Wait while comments are loading...