INDIA: Indian Textile Industry on the Upswing
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…
Egytex News Desk
Egytex
"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 labor 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 recognized 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.
Source: EconomicTimes/IndiaTimes.com
From the Egytex news archive, first published on 25 June 2008. Figures and names are as reported at the time.
