Anti-China Sentiments: Indian Textile Sector Is In A Sweet-spot

17 June 2022, Mumbai:

Current State Of Affairs

With anti-China sentiments on the increase in the United States and worldwide, the region's textile industry sees an opportunity to tap into the American garment market.

According to a Business Standard report," It is in a sweet spot, largely because of the China Plus One policy of European and US apparel brands, and the ban on Chinese cotton by the US. Industry players also indicate that following the China Plus One strategy, there is at least a 20 percent shift of exports from that country to India".

The Indian Texpreneurs Federation (ITF), located in Coimbatore, has urged textile businesses in the state to focus 'aggressively' on the US market right now. Right now, in regions like Tirupur, around 75% of units focus on European markets. Focus on the US is less. This combination of factors and the situations post the Covid-19 outbreak, could accelerate the trend of decline in Chinese apparel imports by global countries, Dhamodharan said.

A prominent German business that has been getting T-shirts from China for years contacted a supplier in Tirupur, Tamil Nadu's famed textile industry, a few months ago. After making inquiries and conducting due diligence.

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The firm offered Warsaw International a four-thousand-piece T-shirt purchase for this fiscal year. According to Raja Shanmugham, managing director of Warsaw, the brand stated it wished to relocate a portion of its business away from China but refused to specify why.

India should concentrate on reclaiming the markets that the Chinese are abandoning. Trends indicate that this is not the case. Even with free-trade agreements like Japan's, our garment exports have not increased significantly.

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The export and import laws should be formulated so that the industry, particularly textiles, has a level playing field.

Imports of raw materials used to make synthetic textiles, for example, are subject to a higher tariff. Then anti-dumping duties on synthetic fabric raw materials were levied on select Indian manufacturers. They had complained about the impact of raw material imports.

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According to a report released in October last year by the Confederation of Indian Industry (CII) and global management consulting firm Kearney, India's textile industry should aim for $65 billion in exports over the next five years, especially with China Plus One sentiments favouring India as global companies look for sourcing and manufacturing destinations outside of the factory of the world, China.

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According to the Press Information Bureau, India's domestic textile and clothing manufacturing is valued at $140 billion, including $40 billion in textile and apparel exports. According to the commerce ministry, the government has set an export goal of $100 billion over the next five years, up from $34 billion in 2019-20.

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According to experts, India, as a significant textile player, has the chance to expand its footprint in this market significantly.

Way Forward

The government's goal of $100 billion in textile exports over the next five years can only be met if a robust structure, longer-term policies, and more excellent planning by Indian enterprises are in place.

Aside from that, one needs to assist with ease of doing business to assure the seamless running of supply chains for brands and merchants wishing to de-risk operations.

Also, if India controls its cotton supply well enough, we will be able to add more value to raw cotton or yarn exports, allowing us to expand our operations and market share.

Here We will Like To Leave You With The Thoughts," There Is A Semblance Today Than Ever Before In The Optimism That Indian Textile Industry Seems To Be Poised To Wriggle Out Of Troubled Water To Cash In On Anti-Chinese Sentiments".

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