CHINA: Textile Sector Bounces Back on Track Paved by China
Textile industry of China has been severely hit by its internal pressures such as rising cost of production and appreciation of Yuan. This has turned out to be a blessing for India whose exports have started looking up with depreciation of rupees and more orders from US. Mr. D K Nair, Secretary General of…
Egytex News Desk
Egytex
Mr. Nair is of the opinion that the hopes of a possible revival of Indian textiles and clothing exports are partly based on currency movements. After appreciating from a level of over Rs45 a dollar to around Rs38.50 a dollar within a year, rupee has now started weakening and has reached the level of Rs43 a dollar. Indications are that the currency is likely to remain weak during the rest of the current year.
At the same time, the trend of currency appreciation seen in China during the last few months continues unabated. As of May this year, Chinese Yuan has appreciated by about 9 percent against US dollar, compared to the same period of last year. Vietnam, which was also being assisted by a weakening currency, to take over much of the textile and clothing business of China, has also now started facing currency appreciation. In May 2008, Vietnam’s Dong, which had been consistently depreciating during the last three years, strengthened by 1.21 percent, year-on-year.
Source: Fibre2fashion.com
From the Egytex news archive, first published on 5 June 2008. Figures and names are as reported at the time.
