India Gaining Edge Over China In Textiles.

The Indian textile industry has witnessed rise in overseas demand as the the Chinese textile and apparel sector is facing challenges from labour shortage and high wages...

The Indian textile industry has witnessed rise in overseas demand as the the Chinese textile and apparel sector is facing challenges from labour shortage and high wages, combined with rising inflation in the country, industry experts told SME Times.

"There are indications that there is a demand shift from China to India, especially in the non-apparel segment. From January-December 2010, imports from India to US grew faster than imports from China," Confederation of Indian Textile Industry (CITI) Secretary General, D.K Nair said.

"China is also becoming uncompetitive in the textile segment, which will give India a competitive advantage and this trend will continue for the next 10 years, making India a major sourcing destination for textile and apparels," he told SME Times.

Commenting further on the challenges the Chinese economy is witnessing currently, he said that there is not only the pressure of rising inflation and ascending labour costs but there is also a problem with the pollution created by the processing industries.

He also pointed out cotton price in China is 10 percent higher than that in India, which is beneficial for the Indian textile industry. And, all this is actually making Chinese textile industry to be at disadvantage.

Opining on the issue, the Garment Export Association (GEA) President, Rakesh Vaid told SME Times that the Indian textile industry has become competitive also in the fashion garment segment. "Buyers are looking for India in this segment," he said.

Vaid, however, added despite the problems faced by the Chinese textile industry, it will take time for India to take over China. "The process will go slowly'" he said.

Viewing on the competitive position of the Indian textile industry against that of China's, Subhash Mittal, an exporter and Chairman & Managing Director, Payal international Ltd said, "China is looking out for India at the moment but China also wants to meet their own requirements in their country. China wants to meet their domestic demand, which is advantage for us".

"China has to import raw cotton from India and then transfer it and produce into finished products, which gives India a competitive advantage," Mittal said.

Also, China is becoming expensive for the buyers; so the shift is happening. Every day there is a uncertainty amongst the buyers due to the problems emerging in China at the moment, he added.

However, Mittal cautioned that it is not easy for Indian exporters compete China in giving timely deliveries of product and services. "As the delivers are concerned India is still has to work upon. China has quite good facility in the delivering goods to their potential buyers," he said.

Long procedural delays and regulations in the customs department in clearing the shipments from the Indian ports need an immediate attention if India needs to take over China and become a major sourcing destination in future, the exporter opined.

Source :4textile.com