The loss of China’s share in the textile market is likely to benefit neighbouring South Asian countries including India and Pakistan.
Animesh Saxena, MD of Neetee Clothings Pvt Ltd based in Gurugram cum President of industry body Federation of Indian Micro and Small & Medium Enterprises (FISME) said, “ In general Textile and Apparel demand has been robust this year due to high demand from US and EU. Further due to restrictions and ban by the US on cotton export from China’s particular region Xingxiang has resulted into additional business for other countries including India and Pakistan who has a strong Cotton production base”.
Earlier this week, the India Ratings and Research (Ind-Ra) had reported that the textile demand is expected to speed up in FY23 as per reduction in logistics problems for export and with China losing its textile value is another advantage for India.
Similarly, a domino effect is felt in the textile market trends of Pakistan where exports are buoyant as textile and garment exports from Pakistan increased by 24.73 percent year-on-year in dollar terms in the first seven months of fiscal 2021-22.
During the period, Pakistan earned $ 10.933 bn from textile and apparel exports, compared to exports of $8.765 bn in July-January 2020-21, according to data from the Pakistan Bureau of Statistics. Meanwhile, the value of textile machinery imports by Pakistan increased significantly by 77.50 percent year-on-year to $ 504.269 mn during the seven-month period. In fiscal 2020-21 ending June 30, textile and garment exports from Pakistan increased by 22.94 percent to $15.400 bn over $12.526 bn exports in the previous fiscal. In fiscal 2018-19, the value was $13.327 bn.
Whereas Chinese textile exports were $7.30 bn in January 2021, which dropped by 27.68 percent to reach $5.28 bn in March 2021 and recovered again in Q2 2021 to reach $7.37 bn in June 2021 owing to the pandemic. The upward shift of textile market for both India and Pakistan is a boost for the developing economies owing to the bottlenecks in China’s business nudging the world economic order.
