Most of the machineries or accessories, used by Indian apparel industry are being imported from China. Being an apparel exporter, technology provider or accessory/fabric importer, have you noticed any impact of the ongoing tension between China and India?
Dr. Sandeep Gupta, Richa Industries Limited, Faridabad
It is true that most of the machineries or accessories, used by the Indian apparel industry are being imported from China. However, we at Richa, are unaffected by this situation and we have rather seen benefits in our business. One such recent example is the increase in sale of polyester fabric. Most of the fabric buyers have now moved to domestic players for fabric purchase rather than depending on the China market, all thanks to the “Make in India” movement driven by our Government. We are now witnessing a rise in orders from domestic buyers as an outcome of this.
In our processing unit, the prices of dyes and chemicals that we are using have hiked as the raw material for the important dyes and chemicals is procured from China. The halt in their supply because of the tension between India and China has made all the vendors increase their prices, which has impacted our costing. However as true Indians, we have complete faith on our government and their actions. These effects are just temporary hurdles in the path for a better and developed India. Hence, we are hopeful about a better situation in future. Even in worst circumstances, if the situation deteriorates further, there will be negligible impact on the textile industry. India is adept at handling all types of situations in any given circumstances.
Vijay Agarwal, Chairman, Creative Group, Mumbai
I think the relationship of
India and China is similar to that between a husband and a wife. In spite of several stand-offs, both the parties struggle hard to maintain their association. However, the good thing is that this severing of ties between the two countries would not have a major impact on the Indian apparel export. The first reason for stating this is that I don’t think our import of Chinese fabric and trims could be more than 2-3 per cent of our exports. As far as machine is concerned, the good brands will find other places to manufacture the same; and since China is becoming expensive for such brands, they will be looking at Vietnam, Cambodia and other places as substitutes.
And one should not forget the trade deficit between India and China which is favourable for China and they would be bigger losers than India in case of a fall-out with India. Overall, I don’t think there would be a serious problem in exports if situation between India and China does not improve.
Sanjay K Jain, MD, TT Ltd., Delhi; Chairman, NITRA/Vice Chairman, CITI
There is a definite uneasy position between the two giants; however, I don’t see this precipitating to an economic tussle in any major way which would influence the trade flow between the two countries.
Yes, we can see some antidumping and safeguard measures coming in a bit faster, but that’s the maximum impact that I see happening at this stage.
Sanjiv Jain, President & CEO, TQM Global Buying, Noida
The tension between China and India at the borders is still not visible on the imports, and I personally don’t think, this will be visible very soon. China has grown tremendously in infrastructure and to sustain this growth, they cannot afford to strain relations with any big country who is a major buyer for them in numerous products. They would rather try to solve the problems across the table. These are my views of this issue at present.
However, if the tension between India and China escalates, it can have spiralling impact on the trade relations between the two nations. China has always looked at India as a lucrative market. And if these relations worsen, the imports are going to certainly fall and affect both the countries equally. India would lose volume of exports at an economical price, due to lack of materials or machinery. Politically China has more to lose than India. India is not too dependent on China yet, due to its massive domestic industry, and still can find more options for importing these products and machines. But all these are mere anticipations at the moment. We just need to wait and watch!
Jay Kumar, CEO, Fedmac, Tirupur
Border stand-off between India and China is a frequent issue but till now, it has no crucial effect on the commerce between the two nations. Although this time around, the tension is more pronounced, it is nowhere close to causing disruptions in business. Both countries can hardly afford carrying
decades old border issues to the business table. US, Japan, Korea too have similar frictions with China but business amongst these countries continues as usual.
Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation (ITF), Coimbatore
China has huge trade transactions with India and may not choose to become more aggressive. India and China are the two biggest and fast-growing markets, and they should focus on better trade relationships, instead of fighting. Both countries may look at opportunities in trade with Regional Comprehensive Economic Partnership
We are confident about Indian Government’s matured strategy to deal with this subject and we may expect an amicable dialogue based solution towards this issue. We don't view this as a major threat to our textile trade.
M.G. Goswami, Retail Head, F-Studio Fashion, Surat
Trade between China and India is about US $ 70 billion and trade deficit of about US $ 44 billion is in favour of China. Both countries have targeted to increase the trade to US $ 100 billion by 2020. Most importantly, we are living in the era of globalization wherein every country’s economy is interdependent on each other. We cannot, therefore, risk deteriorating the trade relations with the second largest economy of the world. Rather we should use this platform to resolve the border disputes with China. So, if both the countries want good progress, it is necessary for them to give each other a helping hand.