23 May 2022, Mumbai:

A prominent German business getting T-shirts from China for years contacted a supplier in Tirupur, Tamil Nadu's famed textile industry, a few months ago.

Following inquiries and due research, the firm offered Warsaw International a four-thousand-piece T-shirt purchase for this fiscal year.

ALSO READ According to the CII, India's textile exports may increase by $10 billion if the sector obtains 1% market share from China

The worldwide COVID-19 epidemic has spurred the 'China Plus One' supply chain diversification plan, providing chances for Indian players. Furthermore, the shifting importance of China's manufacturing sector in the global export value chain is creating opportunities for Indian businesses.

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.

"Many Tirupur-based suppliers have witnessed higher orders from worldwide companies in recent months, and we believe this is partially related to their decreasing reliance on China."

RELEVANT NEWS China's sewing machines exports grown in 2021

"However, no consumer has stated it so explicitly," he claims.

China's strategic change towards manufacturing high-value goods from low-value goods is evident in both inter-sector, such as the shift to capital goods from footwear, and intra-sector, such as the shift to man-made fibers from home textiles or cotton apparel.

China's strategic change towards manufacturing high-value goods from low-value goods is evident in both inter-sector, such as the shift to capital goods from footwear, and intra-sector, such as the shift to man-made fibers from home textiles or cotton apparel.

A drop in Chinese textile and apparel exports to the US from January to June, despite no change in the value of India's shipments, has sparked hopes of a shift in US orders from the world's most populous nation to this country.

RELEVANT NEWS Apparel Makers' Revenues Keep Growing Owing To Srilanka-China Crisis

India, Vietnam, Cambodia, and Bangladesh are among the few nations whose textile and garment exports to the United States increased in the first half of 2008, even though the world's largest economy declined. Orders from China are shifting to neighboring nations, namely Bangladesh and India. We might see an additional $1 billion in exports from India, according to Rajan Hinduja, MD of Bangalore-based Gokaldas Exports.

According to him, US importers are vigorously exploring alternative sourcing countries, and India is at the top of their list. According to official US figures, the US imported textiles and clothing worth $24.37 billion in January-June 2008, down 5.1 percent from $25.7 billion.

Imports increased from $ 46.93 billion to $ 53.12 billion between 2004 and 2007. In the mid of this year, India's exports to the United States stayed virtually unchanged at $1.42 billion, up from $1.41 billion, while Vietnam's increased to $824 million from $668 million. We received supplies from Bangladesh.

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11 May 2022, Mumbai:

INDIA’S APPAREL & TEXTILE EXPORTS CAN BENEFIT FROM THE SRI LANKAN CRISIS.

Indian apparel makers' revenues have been growing 16-18 percent because of the Sri Lanka-China crisis and robust domestic demand.

ALSO READ Srilanka Crisis: Triggers Export Demand Diverting to India

As Sri Lanka reels under the ongoing economic crisis, Tiruppur-based garment exporters are expecting that international apparel buyers might shift their orders to India, Tiruppur in particular. A few garment units in Tiruppur have received some orders and inquiries already, but no significant shift in orders has taken place yet, they said.

“This is a bright chance that has opened up for India,” he told *The Hindu, adding that the shifting of a substantial portion of the orders will depend on the policy decisions, taken by the Sri Lankan government.

RELEVANT NEWS Tirrupur Garment Exporters Likely To Get More Orders As SRILANKA Stares Economic Crisis

According to a Tamil Nadu exporters association representative, the economic crisis in Sri Lanka may assist the Indian garment sector to a modest degree. Still, the reduction of import duties on cotton will transform the industry's fortunes.

Raja A. Shanmugham, President of the Tiruppur Exporters Association (TEA), has stated that Sri Lankan garment businesses with manufacturing facilities in India may fulfill orders. The production of hosiery goods for export in Sri Lanka has been hampered by many hours of power outages, diesel shortages, and people suffering from high food prices.

Due to high cotton and yarn prices, there may not be a large influx of orders for units in Tiruppur. For example, international brands may relocate their sourcing to Bangladesh and Vietnam, as IANS spoke with Shanmugham. The Sri Lankans notified the authorities that they couldn't afford the necessities since their costs had risen beyond their means.

RELEVANT NEWS Apparel Makers' Revenues Keep Growing Owing To Srilanka-China Crisis

They were sent to a transit camp in Mandapam, Ramanathapuram district, near Rameswaram. The Chief Minister of Tamil Nadu, M.K. Stalin, requested that Prime Minister Narendra Modi allow the state government to give Sri Lankan Tamils necessities and life-saving medications.

As Sri Lanka continues to suffer from its most significant economic crisis, countries purchasing textile products are increasingly turning to Indian exporters, according to a Ministry of Textile official on Friday.

Some nations that previously imported from Sri Lanka have begun contacting India since Sri Lanka is experiencing its worst economic crisis, UP Singh, Secretary, Ministry of Textile, told ANI.

Companies in the Tirupur district have already received some orders. Buyers are already making inquiries with Tirupur Exporters Association and other areas in India since the situation in Sri Lanka is severe, as mentioned by A Sakthivel, President, Federation of Indian Exporters Organization.

Some inquiries may become orders. This is an excellent opportunity. We are in good conversations, and we expect some orders to be diverted from Sri Lanka to India. According to him, Indian exporters receive inquiries from the United Kingdom and European Union countries.

RELEVANT NEWS According to the CII, India's textile exports may increase by $10 billion if the sector obtains 1% market share from China

Since the outbreak of the COVID-19 epidemic, Sri Lanka's economy has been in free fall, resulting in the collapse of the tourism sector. Sri Lanka is also dealing with a crisis, which has hampered its ability to import food and gasoline.

Sri Lanka was compelled to seek aid from friendly countries due to a lack of vital products.

Rupee depreciation and incentive schemes also drive exports.

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09 May 2022, Mumbai:

The government has announced operating instructions for the PM Mega Integrated Textile Region and Apparel (PM MITRA) parks program. The state government would transfer land to a Special Purpose Vehicle, a legal body having 51 percent state ownership and 49 percent center equity.

ALSO READ Textiles Ministry holds National Conference on PM MITRA Parks Scheme

According to the textile ministry's instructions, the parks' locations will be chosen based on five criteria: proximity to the site, existing textile ecosystem, utility availability, etc.

The distance from the nearest highway, the distance from air cargo, the distance from the airport/railhead, the distance from the inland waterway, and the distance from the multimodal logistic park will all be given a 25% weighting.

Similarly, the current textile ecosystem, such as distance from an existing textile cluster, availability of raw materials and trained workforce suited for the textiles sector, and the presence of skill development institutes, would be weighted at 25%.

The availability of a good quality power source at the site to enable the construction and operation of the park, confirmation of a power distribution license for the Master Developer for the parking area, and approval for open access sourcing of power will each receive a 20% weighting.

RELEVANT NEWS PM MITRA Park: States are working hard

The MITRA parks have a five-year budget of Rs 4,445 crore.

Textiles are targeted explicitly under the PLI plan for high-value man-made fiber (MMF) and technology textiles.

Manufacturing recognized items would receive incentives totaling Rs 10,683 crore over five years. TUFS was a credit-linked subsidy program designed to modernize and upgrade the Indian textile industry's technology.

The Amended TUFS, with a budget of 5,151 crores, was implemented to enable and support micro, small, and medium companies.

RELEVANT NEWS Darshana Jardosh: PM MITRA proposals under evaluation

The ministry of textiles also authorized the rationalization and continuation of the Integrated Wool Development Programme (IWDP) from 2021-22 to 2025-26, with a total budget of 126 crores this year.

Domestic textile and garment output is about $140 billion, with textile and apparel exports around $40 billion. In 2019, the textile and clothing sector contributed 2% to the country's overall gross domestic product (GDP) and 11% to total manufacturing in gross value added (GVA).

Women make up 70% of the workforce in the clothing sector and 73 percent in the handloom business.

Textile minister Jardosh recently informed parliament the parameters devised for the selection of sites for PM MITRA parks include connectivity to the site (25 percent), the existing ecosystem for textiles (25 percent), availability of utility services at the site (20 percent), state industrial/textile policy (20 percent) and environmental/social impact (10 percent).

13 State Governments present plans of 18 proposals for setting up PM MITRA Parks in their respective states. A National Conference on PM Mega Integrated Textile Regions and Apparel Park (PM MITRA) Parks Scheme was organized by the Ministry of Textiles on 4th May 2022.

RELEVANT NEWS

As the process of awarding the Mega Integrated Textile Region and Apparel (PM MITRA) park accelerates, many states are stepping up their efforts to secure the park. Under the Ministry of Textiles' ambitious plan, seven parks will be built (MoT).

It's worth noting that several Indian states are eager to host this park. Gujarat and Tamil Nadu are ahead of the pack since they adhere to the majority of the rules.

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14 May 2022, Mumbai:

Emerging Paradigm

Cotton prices in India have risen due to strong demand from the cotton market, diminishing stockpiles, and a 10% import levy on cotton.

According to one ET report," Apparel industry is facing a severe problem of the high cost of cotton yarn and fabrics. During the last couple of months the cotton prices have been hiked up".

In July, the price of cotton increased by $3,800 per confection in 15 days. The sharp rise in prices has thrown the business into disarray and rendered Indian exporters uncompetitive.

ALSO READ CITI hails withdrawal of import duty on Cotton

Demand Supply Equation

Cotton prices have been rising steadily since January 2021, peaking last month. Because of the increased demand, the CCI's cotton supply has been depleted to about 9 lakh bales (which would be its opening stock at the start of the following season on October 1), driving up prices.

According to Pradeep Kumar Agarwal, chairman and managing director of CCI, the corporation had close to 115 lakh bales of cotton before the current season in October 2020 and bought 92 lakh bales during the season.

Furthermore, the United States, the world's largest cotton producer, fell behind due to a severe drought in Texas last year, forcing cotton prices in India to firm up starting in December 2020.

RELEVANT NEWS SIMA, CHAIRMAN: Indian Textile Mills concerned about global order cancellations

Competitive Landscape

The SIMA chairman also urged the central government to promptly remove the 10% import charge on cotton to influence market attitude and prevent additional damage to the cotton textile value chain. The Cotton Association of India had also requested that the government remove the cotton customs levy.

Due to the introduction of import duties, there is a shortage of extra-long-staple and non-ELS contamination-free sustainable cotton, as India seldom produces these types of cotton.

Pakistan, India, Bangladesh, Vietnam, Turkey, and China are predicted to have the fastest-growing cotton industries and demand. Because of their low labor costs, the first four countries named are becoming global textile hubs.

RELEVANT NEWS SIMA: Free import of cotton, demands cotton textile industry

China Dominance

All trade associations hailed the center for their kind support for withdrawing 10% import duty on Cotton – 5% Basic Customs Duty (BCD) and 5% Agriculture Infrastructure and Development Cess (AIDC), including 10% Social Welfare Cess (SWC) on both amounting to 11% import duty on cotton – from 14th April 2022 to 30th September 2022.

The rising affluence of China's and Turkey's populations will make production less competitive. It is expected that domestic production will not be able to meet the complete demand of China's industry, forcing the country to increase imports.

China is the world's largest market for imported cotton lint, accounting for 29 percent of global imports. Viet Nam was ranked second in the ranking, with a 12 percent global importance share.

Pakistan came in second with an 11 percent stake. In 2020, the average cotton lint import price was $1,706 per tonne, down -5.3 percent from the previous year.

RELEVANT NEWS SIMA & CITI to impress upon Tamil Nadu CM, MK Stalin seeking to ramp up cotton production

State Of Affairs

The major importing countries' average prices differed little. The following costs were recorded in major importing nations in 2020: India and China, with Vietnam and Turkey among the lowest.

Muted demand from China is likely to affect India's total cotton yarn outbound shipments and the export unit realizations.

There is no price parity between cotton and yarn right now. As a result, spinning mills will be forced to raise yarn pricing shortly to avoid losses. Under Minimum Support Price operations, CCI procured over 25% of the Indian cotton crop.

The total cost of this purchase would be Rs.43,000 per sweet. The current selling price is out of the ordinary.

CCI might have maintained prices even after accounting for carrying expenses and fair profit margins.

Optimistic Note

CITI Chairman hopes that the T&C Industry would be able to achieve the export target of US$ 16.96 billion (25% increase) set for the cotton value chain and the total textiles and clothing export target of US$ 47.029 billion (18% increase) set for the financial year 2022-23 with the help of availability of cotton fiber and other raw materials at internationally competitive prices to the Indian T&C Industry.

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11 May 2022, Mumbai:

The coronavirus epidemic caused a 3% decline in worldwide trade values in the first quarter of 2020. COVID-19 can cause the worst economic downturn since World War II, hitting every industry from banking to hospitality.

Given the ambiguity surrounding the epidemiological and economic conditions, estimating the pandemic's duration and severity appears to be an impossible undertaking.

COVID-19 caused the most significant supply chain disruption in industries with more worldwide operations (especially those that rely on Chinese supplies for production).

ALSO READ

Precision devices, machinery, automobiles, and communication equipment were all affected. The fashion sector confronts enormous dangers due to its non-essential character.

Indeed, as a result of COVID-19, customers worldwide are no longer in need of new items. A highly integrated worldwide supply network characterizes this business.

Many developing nations play the function of low-cost input providers in it, and difficulties that some of these nations confront, which rely on textile and garment exports.

RELEVANT NEWS

The world has shrunk as a result of economic globalization. The COVID-19 epidemic has swiftly spread over the world due to increased commerce, capital, and labor flows, which is the most notable change compared to any prior global public health disaster. As the epidemic develops, more countries are closing their borders to stop viral transmission successfully.

The COVID-19 situation has caused governments to reconsider their roles in GVCs and the dangers that go along with them.

In addition, post-pandemic GVC reconfiguration is projected to increase since several nations and multinational firms are exploring a move to economic detachment and self-developed value chains, resulting in GVC instability and the danger of GVC migration.

The pandemic has severely disrupted the global garment value chain, owing to direct impacts of illness on factory employees, the lower output of commodities required to manufacture clothes (cloth, thread, etc.), and decreased demand apparel in high-income nations.

The worldwide COVID-19 epidemic has spurred the 'China Plus One' supply chain diversification plan, providing chances for Indian players.

China's strategic change towards manufacturing high-value goods from low-value goods is evident in both inter-sector, such as the shift to capital goods from footwear, and intra-sector, such as the shift to man-made fibers from home textiles or cotton apparel.

RELEVANT NEWS According to the CII, India's textile exports may increase by $10 billion if the sector obtains 1% market share from China

Developing countries suffer disproportionately in terms of profitability, salaries, job stability, and employee safety. Women in the garment industry have been affected particularly hard because they make up the majority of the workforce and because they have been subjected to increased unpaid care work and a higher risk of gender-based violence.

The shifting importance of China's manufacturing sector in the global export value chain is creating opportunities for Indian businesses.

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07 May 2022, Mumbai:

Buttons are imported from China and Hong Kong, where the more trendy wooden or engraved buttons are created by apparel manufacturers worldwide, including India.

Plastic and nylon buttons are primarily produced in India.

The industrial-grade thread they use is made in India by Madura Coats in Chennai.

ALSO READ Grasim Industries: Rise in input cost compels hike in VSF prices

This, according to Ravi Kishore, former director of the Apparel Export Promotion Council, is symptomatic of India's dispersed and fractured textile supply chain, which raises transportation costs and lengthens production lead times. As a result of all of this, the sector cannot compete with Bangladesh and Vietnam.

In 2022, most fashion players will be on shaky ground, as an unreliable and unpredictable recovery will force them to either improve their game or risk consolidation or insolvency.

Indeed, many of the benefits projected next year are likely to be outweighed by global economic recovery pains and disruptions, forcing decision-makers to take measures to keep enterprises stable.

RELEVANT NEWS IKEA (Ingka Group) hikes prices as supply chain woes continue unabated

Customers, workers, contractors, investors, and the general public want fashion firms to operate in their best interests. Many brands will emphasize circular business models, greener resources, and more environmentally friendly technology.

The textiles and garment sector plays a significant role in the Indian economy in terms of employment, value contributed, and export revenues. Except for the spinning industry, the industry is dominated by tiny, fragmented, and non-integrated entities.

Large units dominate spinning section output, which has undergone significant modernization at a quick pace.

RELEVANT NEWS Apparel retailers to have a tough year ahead: Analysts, ICICI Securities

In recent years, there has been a step toward consolidation and integration with the value chain upstream and modernization in categories such as clothing. The ginning, weaving, and processing industries lag in terms of modernity.

Over time, the power loom sector has grown dominant within the weaving industry.

According to the Ministry of Commerce, India's exports have dropped 20% from 2016-to 17 to $29 billion in 2020-21.

According to Wazir Advisors, the domestic market fell 30% last year, to $75 billion in 2020-21. The industry is expected to increase to $190 billion by 2025-26.

Growth is critical since the textile industry provides between 2% to 3% of India's GDP, 7% to industrial production, and 12% to export profits and employs over 45 million people.

RELEVANT NEWS Mitra, principal chief adviser, West Bengal :GST hike for man-made fibre (MMF), Textiles to hit MSMEs & dampen demand

According to producers, many goods created with these materials, such as sportswear, knitted shirts, and woven tops, are not covered by the HSN codes in the plan.

A Harmonized System of Nomenclature code is a six-digit number categorizes over 5,000 goods worldwide.

An up to 80% spurt in cotton prices in the past one year has pressured margins of textile and garment firms. This, combined with the persistent inflationary forces T&A sector has been hit hard by job losses and rising living.

But a section of the industry feels that the rate hike would dampen demand given that prices to end consumers could rise as the industry passes on the higher tax. Three-fourths of the domestically produced textile items are sold in the domestic market.

“The million dollar question is if a cost-benefit analysis has been done?".

The cost of sticky inflation is a massive closure of units, particularly small and medium units, (which will give rise to) unemployment as the inflation starts to bite common more than anybody else at this juncture and potentially hurting the demand especially of non-discretionary items given that Russia-Ukraine war end is not in sight.

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13 May 2022, Mumbai:

Industrialists and, professionals, notable exporters are concerned about currency appreciation-related losses. Exporters see a significant drop in exports, particularly in garment exports.

To make matters worse, the currencies of their closest competitors, such as China, Bangladesh, Indonesia, and Pakistan, have seen little or no appreciation.

ALSO READ Textiles & Apparel Exports: April-Jan 2021-22

Compared to the Indian rupee, China's Yuan has gained just 4.72 percent in the last year. The graph below depicts fluctuations in several currencies against the US dollar. The state of the Indian textile engineering industry (TEI) is directly proportional to the state of the Indian textile industry.

The rupee's gain of 15% last year has proved devastating to the Indian textile sector.

In a recent press statement, the Confederation of Indian Textile Business (CITI) urged the government to help the industry by proposing relief measures that would balance at least a portion of the losses incurred due to rupee appreciation and interest rate hikes.

RELEVANT NEWS Ind-Ra: High input costs to impact textile demand in Q1FY23

Because of the losses sustained in both the local and international markets, units across the textile value chain are closing or scaling down operations. According to reputable sources, most equipment businesses are seeing negative growth this year.

For example, synthetic machinery is down 11%, weaving and associated machinery is down 34%, and processing machinery is down 37%.

RELEVANT NEWS Falling Rupee: Increasing Exports

The spinning sector earns significant operational profitability as compared to other industries. As a result, the position of spinning machinery makers has improved.

Growth has slowed to 26 percent, down from 45 percent previously. Because of high costs and a lack of free trade agreements, India has lost market share to Vietnam and China in cotton yarn during the last decade.

RELEVANT NEWS In 2021, India's domestic textile exports would generate US $ 6.68 billion in income

Even when global commerce in RMG decreased, India did well to preserve its market position.

The upside of the falling rupee

Where is taking us to; How a country is using the emerging opportunities in a weak currency regime, in terms of both import substitution and a surge in exports.

The precipitous fall of the rupee in the period between May and August created panic, as in a kneejerk reaction. 

There is a section the "Economists say the benefit of a strong rupee outweighs the advantages of a depreciated currency, regardless of the purpose, a depleted currency is beneficial to one set of players and quite certainly detrimental to another."

Historically Benefits of a Strong Currency:

Cheaper imports - and resultant higher real income;

Cheaper service for Foreign

In conventional wisdom, a depreciated country's currency makes imports pricier, whilst catalytic action is it stimulates exports by making them affordable for overseas buyers to buy.

Competitors such as Vietnam and Bangladesh, on the other hand, have done far better, capitalizing on China's declining market share over the last five fiscal years, whereas India has not.

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08 May 2022, Mumbai:

Energy and commodity prices have risen due to the Ukraine conflict, putting a damper on UK economic activity. Rising prices would exacerbate already-high UK inflation, which is forecast to reach a four-decade high of 8.5 percent in April, up from the Winter Forecast's prediction of 7.2 percent.

Statistics predict that inflation will remain close to 6% by the end of 2022 and will not return to the Bank of England's 2% objective until late 2023.

ALSO READ Persistent Inflationary Forces Playing Out & Its Impact On T&A

While wealthy and low-income families have lately enjoyed equal inflation levels, the upcoming 54 percent increase in typical residential energy costs in April implies lower-income households might see inflation of approximately 10%, according to the estimate.

If the experiences of worshippers like Shekhar M Shetty are any indication, even the gods are being singed by inflation. Faced with escalating prices on almost everything, the 68-year-old entrepreneur has reduced his offers to the sublime.

India's headline retail inflation exceeded the Reserve Bank of India's upper tolerance limit of 6% for two consecutive months, February and March (RBI).

RELEVANT NEWS Retail inflation up at 4.9% in Nov.,2021, while clothing inflation rose close to 8%

In March, consumer price index inflation hit a 17-month high of 6.95 percent, up from 6.1 percent in February. Both figures are concerning since they exceed the acceptable inflation range of 2-6 percent and do not bode well for an economy that is only now recovering from the Covid-19 outbreak.

Increased costs are wreaking havoc on the global economy, raising worries of a recession.

Inflation has been vital in the United States, Europe, and Japan.

Experts feel that the Russia-Ukraine conflict and China's COVID-19 shutdowns are raising the possibility of a recession. Prices for commercial cylinders of liquefied petroleum gas (LPG) increased by Rs 250 in April.

In Delhi, a 19-kg commercial cylinder costs Rs 2,253, while in Mumbai, it costs Rs 2,205. In Delhi, a 14.2-kg non-subsidized LPG cylinder costs Rs 949.50. CNG and PNG prices have also increased.

Concerns over the falling supply in Russia, which has been sanctioned, pushed up global oil prices on Wednesday.

RELEVANT NEWS Apparel brands & Retailers reluctant to take price hikes

Fears of a supply shortage have arisen due to Moscow's announcement that peace negotiations with Russia had reached a stalemate. At 0053 GMT, Brent oil futures were up 59 cents, or 0.6%, to $105.23 a barrel, while US West Texas Intermediate (WTI) crude futures were up 60 cents, or 0.6%, to $101.20 a barrel.

In 2022, most fashion players will be on shaky ground, as an unreliable and unpredictable recovery will force them to either improve their game or risk consolidation or insolvency.

Indeed, many of the benefits projected next year are likely to be outweighed by global economic recovery pains and disruptions, forcing decision-makers to take measures to keep enterprises stable.

Indian Consumers are typically bargain hunters, looking at buying cheaper clothes as inflation crimps/leaving a hole in their pockets the budgets of many households especially as they are feared to downgrade down the line on the non-discretionary items as sticky inflation persists.

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06 May 2022, Mumbai:

The worldwide COVID-19 epidemic has spurred the 'China Plus One' supply chain diversification plan, providing chances for Indian players.

Furthermore, the shifting importance of China's manufacturing sector in the global export value chain is creating opportunities for Indian businesses.

ALSO READ According to the CII, India's textile exports may increase by $10 billion if the sector obtains 1% market share from China

China's strategic change towards manufacturing high-value goods from low-value goods is evident in both inter-sector, such as the shift to capital goods from footwear, and intra-sector, such as the shift to man-made fibers from home textiles or cotton apparel.

It is a business strategy that avoids investing in China instead of expanding into other nations.

In other words, it may mean continuing to use China's resources while also including other sourcing areas with cheaper salaries into the mix.

Two tactics are gaining traction in this regard.

RELEVANT NEWS Apparel Makers' Revenues Keep Growing Owing To Srilanka-China Crisis

The first is to use a business with fewer suppliers to simplify the supply base in the current sourcing base substantially. The second is to expand the number of reputable suppliers in fewer countries.

The objective is to continue creating flexibility and dual sourcing choices by strengthening strategic supplier relationships across the matrix. China was a world leader in various industries until recently, including home textiles and cotton garments. Still, the shifting dynamics of the global supply chain have caused a significant shift in its manufacturing strategy.

RELEVANT NEWS Indian Textile Sector: Targeting $65 billion exports by 2026

In China, the manufacturing sector accounts for 30% of the country's overall economic output. China ranks first in producing over 220 of the world's more than 500 critical industrial items demonstrating its dominance in the global industrial sector.

China has become the first country to earn all of the United Nations' industrial categorization categories.

Small and medium-sized businesses and private corporations in China have played a critical role in generating employment, maintaining steady growth, and promoting innovation.

By the end of 2018, there were over 30 million small and medium businesses and over 70 million self-employed industrial and commercial families. These industries provide more than half of the country's tax income, 60% of GDP, 70% of technical advancements, and employ more than 80% of the workforce.

RELEVANT NEWS Bangladesh (BD) RMG exports growth trajectory to the US overshadows China & Vietnam

Things have begun to shift in recent years as the country's economy has changed.

Chinese employees' salaries have quadrupled in the previous ten years, driving corporations to look for new markets where worker wages are still cheap. Because of demographic fluctuations, labor expenditures have increased.

China is an elderly country whose one-child policy has hindered the supply of the next generation of employees.

RELEVANT NEWS COP 26: Need to re-imagine the roles of (RMG) apparel industry & policy makers

Leveraging the China Plus One strategy India’s textile industry has been growing on rising home textile exports and favorable geopolitical undercurrents encouraging countries to adopt the China Plus One sourcing strategy.

Recent geopolitical developments such as COVID-19 have intensified the need for global diversification for these countries, as per a CII-Kearney study. To benefit from growing development, India needs to grow exports by $16 billion, urges the study.

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