Both the Indian and Chinese Governments have repeatedly expressed their firm resolve to further expand the traditional mutual trade in textiles and clothing (T&C). Of course, bilateral trade in the sector is definitely on an upswing over the last 10 years. Considering the huge installed capacity at every stage of textile manufacturing in the two countries and the modern machinery installed in each segment of the T&C value chain, the current trade pattern complements each other’s growth. While there has been a consistent rise in India’s imports of processed fabrics from China, the latter still offers the single largest market for Indian cotton and cotton yarn. Further, the official Indian estimate is that the overall yarn exports from the country could double and touch a record 2,000 million kg this year following China’s recent policy shift in favour of greater imports of Indian yarn known for its superior quality.
The current India-China trade in textiles reflects a healthy trend. In 2012-13, China imported $40 billion worth of textiles and clothing, of which India’s share was $4 billion, next only to the US. India’s exports during the year stood at $5.36 billion, of which Chinese supplies amounted to $2.32 billion. A whopping 87 per cent of imports into China is of raw material, while home textiles and clothing constitute the balance. The Indian industry may very well take this opportunity to improve its trade prospects by convincing Chinese importers that it would be most economical to import certain varieties of fabrics and home textiles from India, besides cotton yarn, to sharpen their competitiveness in finished products. The advantages of Chinese sourcing of fabrics from India include a wider scope for increasing investments in modern looms in major weaving centres and the comparatively lower conversion cost owing to the competitive cost of raw material and labour. Further, during its recent visit to India, a high-level Chinese delegation cited the enormous scope for export of basic varieties of fabrics from India since Chinese enterprises are finding it extremely difficult to meet the growing local demand for them because of the ever-escalating cost of production.
Their products already popular worldwide, the textile industries of both the countries would hopefully seize the opportunities arising out of the Indo-Chinese relations in different fields turning more cordial than competitive, and would intensify their drive to garner a bigger share of the global textile market.