There has been a 17.6 per cent overall decline in exports from India. Textiles initially appeared to buck the slowing trend in exports but it has now been dragged into the decline. Readymade garment exports in April had crossed Rs 10,000 crores but a gradual but steady decline through the April to September period brought down the number to Rs 7,545 crores.
India's bilateral trade with China is skewed in terms of having more imports than exports. The devaluation of the Chinese currency is expected to lead to an expansion of the deficit in bilateral trade with China.
The immediate task at hand for Indian players is to hold their ground in the trade scene with China. Rate negotiations in commodities such as cotton yarn take place in trade fairs. A recent one in China showed Tamil Nadu’s textile players the intensity of this imbalance. The yarn exhibition in China showed there is an immense pressure on pricing. Indian manufacturers struggled to get a good rate for their yarn.
It was then they realised they need a local presence. The idea of a common office in China has been mooted. The industry wants direct selling offices in China, with the industry funding the expenses and the ministry facilitating the setting up.
