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dragon nation has been always proved to be a major hurdle when it comes to India’s onward march – be it any industry! Sure enough, with the question of FDI coming in textiles front too, this becomes yet another instance of how China prospering could well mean India losing out! And so the question arises – how big a hurdle is China in India’s way of becoming a major apparel supplier to global prêt-a-porter market. Well, although India steals the show from China in producing cotton and several other textile materials, it has missed out big time in mass production as compared to the dragon nation. First of all, China has more manufacturing plants and infrastructure facilities, which are thrice superior to what India has today as per CITI (in terms of shipment and roads). Add to this the flexible labour laws (reformed in favour of both the labourers & the manufacturers) related to textile industry and we have a perfect picture of why China is a better textiles investment hub. So it’s no surprise that Chinese textile industry attracts 15% of the total FDI in textile industry, whereas the Indian textile industry attracted a mere 1.05% of total FDI (as per Northern India Textile Mills Association, NITMA). “FDI is required for value addition for export and it also helps companies to create market abroad,” feels, Shisir Jaypuria, President of NITMA. Thankfully, the Indian policy makers realised the need of the hour and thus allowed 100% FDI in the textile sector during 2006. However, there are not all smiles as S.P. Oswal, Chairperson of Textile division, CII, asserts, “That’s too late! It will take us more time to reach where China is today. They are a major competitor in India’s way of dominating the world’s largest apparel market – USA.” So it’s a no surprise that China exported an extensive $23.80 million of fabric to Uncle Sam’s dominion (during the period January-July 2007). On the contrary, India exported only $4.87 million worth of fabric to USA for the same period (as per OTEXA). Huge difference?! Well, let’s better ask – when are we reaching there?For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
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