Behind The Shift Of Indian Textile Orders To China: Emergency Orders Are Hard To Keep At Home

India is the world's largest producer of cotton, the world's largest producer of jute and the world's second largest silk producer, with 22 per cent of the world's yarn capacity. Textile revenues have been one of the main pillars of the Indian economy and one of the country's largest sources of foreign exchange income, accounting for about 15 per cent of total export revenues. The large outflow of orders here is due to the shutdown of the textile industry caused by COVID-19.

The transferred orders are mainly concentrated in the home textile sector. There are two reasons for this phenomenon. "First, China has strong control over the epidemic, and compared with other countries, it has the capacity to undertake orders for the resumption of work and production. Second, the domestic cotton price is relatively low, with low cost brought by the price advantage."

Where should industrial upgrading go?

Although the textile industry export performance is excellent, but for some return orders, the textile and garment industry is generally judged as "emergency orders".

Textile industry is a labor-intensive industry, which is highly sensitive to labor costs. In recent years, with the increase of labor costs in China, many brands have moved their factories to Vietnam, Laos and other Southeast Asian countries.

Once India's domestic production capacity is restored and its domestic production cost advantage is reduced, it remains to be seen whether orders can remain in The country for a long time. It is not so easy for these textile orders to be transferred back, especially the leather goods industry is not highly skilled, so it is relatively easy to transfer to foreign countries.

Therefore, if China wants to maintain the competitiveness of the textile and garment industry in the world, the upgrading of the industrial chain becomes the most important direction.

As the country with the most complete textile industry chain in the world, China has always occupied the top position in the competition. However, at present, our advantages are mainly reflected in the middle and low-end products, rather than high value-added products. Therefore, in the high-end field of textile, we still need to polish our technology and process to make up for the gap with developed countries.

Although China's textile industry has industrial supporting advantages, under the background of environmental pressure and rising production and processing costs, part of the domestic textile industry will still maintain the trend of outward migration. However, labor intensive is not the only substitute words in the textile industry. In addition to cotton yarn, grey cloth and other ordinary goods, the downstream fabrics and garments take more personalized routes. The design and style determine the premium and sales speed of products.