India is China’s second largest cotton importer. Sino-Indian trade has been booming in the past two years, and cotton trading volume has increased year by year. Although China ranks first in the development of the global textile industry, its cotton production is insufficient, while India’s cotton production is sufficient. This has found a meeting point for the development of the Chinese and Indian textile industries and can serve the entire textile industry chain.
Today, India is very competitive in the textile industry, because as the level of automation in agriculture increases, fewer workers are hired in the agricultural sector, which means that India has more labor resources to call upon in the textile industry.
India’s cotton industry has some clear advantages. First of all, in terms of cotton production, India’s cotton production is far greater than its consumption. Moreover, production capacity has been continuously improved in recent years and has achieved a certain degree of sustainable development. Secondly, in terms of spinning, the Indian spinning industry has a high level and production capacity has been increasing in the past few years. Moreover, the production process is well managed and the quality of the yarn is second to none in the world. Thirdly, in terms of equipment, the machinery in the textile industry is in a leading position and uses advanced imported technology and independently developed technology. This makes textile machines produced in India very cost-effective. Finally, in terms of policy, the Indian government also encourages the development of the textile industry and is completely open to foreign direct investment. Therefore, cooperation between Chinese and Indian entrepreneurs in textiles such as cotton will be conducive to integrating the industrial chain in textile manufacturing, and such integration will reduce the costs of Chinese entrepreneurs and solve problems that arise in the development of the Indian cotton market.
As we all know, in the past six or seven years, the trade relationship between India and China has become increasingly close. Many Chinese entrepreneurs have invested in various fields in India, such as investing in textile industry production facilities and improving India’s manufacturing capabilities. Both parties A lot of cooperation was achieved. In addition, Indian companies hope that the Chinese government will provide certain preferential treatment in terms of taxes and tariffs, and the two sides will strengthen mutually beneficial cooperation to help further increase the trade volume between the two sides, and use India’s cost advantage to help China’s manufacturing industry further develop.
(Based on the speech delivered by Manikam Ramaswamy, President of the Indian Cotton Textile Export Promotion Association at the 2014 China International Textile Raw Materials Conference)
