Indian textile industry has been exporting textile and associated goods to China for quite a while now. However, the trend might discontinue or become unpopular with the Chinese traders, as feared by the workers and executives of the textile industry.
The reason could be that, firstly, China does not provide duty free access to the Indian cotton textiles. Secondly, India has three major competitions, namely, Vietnam, Pakistan and Indonesia. These countries, on the other hand, enjoy duty free trades. This has thus, led to an increase in exports from these countries and a decrease in exports from India.
According to sources, in the last five years, India’s export of cotton yarn has decreased by a hefty amount of 53%, while Vietnam’s export of textile goods to China has increased by a thick 88%. This has raised the concerns of cotton textile industries in India.
According to sources, the chairman of the Confederation of Indian textile industry has expressed chief concern in this matter. According to him, China does by cotton fibres from the Indian textile industry, however, they prefer the competitors when it comes to several other products like yarns, which come under value added products.
He says that the industry could survive without incentives, but, this fall in exports has proven to be detrimental to the industry. After a lot of deliberation, he has come up with a possible solution. He proposes for bilateral agreements and FTAs. Other than that, there has been considerable pressure on the Indian government to initiate negotiations with China on this matter. According to him these could change the entire scenario and improve the current status.