According to this report China is making inroads into India's domestic market.
Imagine that, China can produce textile raw material and export it to India CHEAPER than India can do it on its own.
The increase in imports to India from China is growing at a 33% a year rate.
The reasons:
1. India has lower-scale operations
2. India canno fulfill large-scale orders
3. India cannot produce specialized fabrics
Thus, India has to rely on imported fabrics.
It appears that the quality of products produced in China and Taiwan have more uniform shades and lower defects than those home grown in India.
I must admit, that even I am surprise of China's strength. They can export things to India cheaper than India can produce themselves.
But, the reasons above make sense...
What do you think?
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If China's doing this through industrialization and mechanisation then great, otherwise there's not much to be proud of. We must find better ways of producing textile products other than the sweatshop style production line which should be phased out. China should take this great opportunity where manufacturers and the nation itself is making money out of textile manufacturing and mechanise the process to gain even better efficiency and competitiveness. Of course there are a lot of jobs on the line but "no pain no gain", we've got to move on to better and greater things.
Posted by: James Zhuo | June 27, 2006 2:53 AM | Permalink to Comment