Recent initiatives by Texprocil for Indo-China textile co-operation through China National textile and Apparel Council (CNTAC) is welcomed by certain segment of the industry while several others have strong opposition to it. Indian exporters are competing with the Chinese counterparts in the western market and even beaten by cheaper products in several sectors. In fact, Indian exporters rather prefer to add value to their products than to compete with them. Also, buyers have preferred Chinese goods due to low price tag on their products and China continued to be a supplier of choice for all large markets where entry barriers have been removed. Japanese and Australian markets have been captured by Chinese goods long back and after the removal of quota, both US and EU markets have been inundated with 'Made in China goods' in the first six months that resulted the trade rows on textiles with the largest markets in the globe. India, on the other hand, with its limited competitiveness compared to China is growing gradually in exports and established itself as the next best supplier of apparel and clothing.
Since, Asia becomes the tailor for the world, competition is inevitable but there are opportunities for mutual co-operation as well. India's strong cotton spinning sector considers China as a large buyer. Also, Chinese market does not demand high
|
| quality yarn. Hence, it is convenient for the cotton yarn spinners or members of Texprocil to explore the large Chinese market. At the same time, Indian spinners that are targeting the Chinese cotton yarn market can install low cost low quality cotton spindles that deliver the value for money.
Apart from Cotton yarn, not many Indian textile products have good market in China so far. India's weaving, processing and garmenting sector is lagging far behind in terms of production capacity, technology and productivity which increases the cost of the final product. Hence, section of the industry considers the dialogue on co-operation with China is like leading a fox to a pen. Since Chinese products are restricted by EU and US, it is looking for alternative markets where India promises a large domestic market with highest share of 'low income population' that prefers cheaper products.
Entry of the Chinese products would bring more competition to the Indian suppliers for sure, which may also force several incompetent players to close down shop. On the other hand, competition would bring in efficiency to the industry, which would be a blessing in long term. But it would be wise for Indian industry to take careful steps for the greater interest of the textile sector in the country rather than being euphoric about Chinse co-operation on trade intelligence data or possible joint venture projects with cheap Chinese machinery. 
|
|
