Textile cos weave new pattern on Chinese curbs
Textile exports are looking up as the rupee depreciates and the Chinese textile industry is hit by internal regulatory pressures.
By Niranjan Bharati, TNN |
NEW DELHI: Textile exports are looking up as the rupee depreciates and the Chinese textile industry is hit by internal regulatory pressures.
Textile export for 2007-08 have reached $20.5 billion, up 9.4% from 2006-07. This is despite exports growing only 1.49% between April and October 2007. The situation, however, improved radically in the later half of the fiscal, owing largely to Chinese problems and hedging by local exporters. ���Under international pressure, China is tightening its labour laws.
It is also reducing subsidies to meet global trade norms. China���s pain is proving to be India���s gain,��� Confederation of Indian Textile Industry secretary general D K Nair said.
In fact, China has started witnessing a negative export growth to US, the same situation that India was facing last year. According to data available with the US trade associations, China���s textile export to US witnessed a 4.5% decline in the first three months of 2008 while India���s export saw a growth of 5%.
Vietnam is the only country that has registered an export growth to US more than that of India. The grim picture of China���s textile industry is evident from the fact that over two-thirds of companies have witnessed a profitability of 1% or less in the recent months, according to a survey, Mr Nair said.
According to another survey, 45% of the textile exporters in China wanted to quit their profession under the changed circumstances. Though appreciation of rupee by 15% against the dollar since October 2006 and a perceptible slowdown of the US economy were the main reasons hurting the Indian textile industry, other internal problems added to the problems.
Textile export for 2007-08 have reached $20.5 billion, up 9.4% from 2006-07. This is despite exports growing only 1.49% between April and October 2007. The situation, however, improved radically in the later half of the fiscal, owing largely to Chinese problems and hedging by local exporters. ���Under international pressure, China is tightening its labour laws.
It is also reducing subsidies to meet global trade norms. China���s pain is proving to be India���s gain,��� Confederation of Indian Textile Industry secretary general D K Nair said.
In fact, China has started witnessing a negative export growth to US, the same situation that India was facing last year. According to data available with the US trade associations, China���s textile export to US witnessed a 4.5% decline in the first three months of 2008 while India���s export saw a growth of 5%.
Vietnam is the only country that has registered an export growth to US more than that of India. The grim picture of China���s textile industry is evident from the fact that over two-thirds of companies have witnessed a profitability of 1% or less in the recent months, according to a survey, Mr Nair said.
According to another survey, 45% of the textile exporters in China wanted to quit their profession under the changed circumstances. Though appreciation of rupee by 15% against the dollar since October 2006 and a perceptible slowdown of the US economy were the main reasons hurting the Indian textile industry, other internal problems added to the problems.
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