The spinning and garment industry is worried with the recent devaluation of the Yuan by China.

Spinning industry is plagued by worry about further slowdown in demand when players are over-dependent on China. While apparel exporters are worried that competition will intensify with China. As spinning industry is already in crisis because of the growing dependence on China and addition of capacities is another cause for getting panicked.

Dwindling demand from the Chinese market have affected yarn export form India, while some apparel orders shifted to India because of slowdown in China. However, according to industry players feel it was too early to estimate the extent of impact by the devaluation. Yet, they say that the textile industry could get worse due to the deliberate devaluation of Yuan, giving an example of competition in apparel exports with China, which could get worse.

This also could be a sign of increased competition from China, feel garment manufacturers, industry believes that this move by China was completely unexpected, this will result in merchandise exports getting severely affected, if the rupee remained overvalued.

The total textile export from China is $150 billion per year, which is 10 times bigger than India, so, industry feels that the Indian government should think seriously about improving India’s global participation.