With the Chinese textile industry showing negative growth for the first time in several years, its Indian counterparts are calling out for an opportunist approach. According to Sanjay Lalbhai, chairman of denim major Arvind Limited, the Indian textile industry should aim at grabbing 10-12 per cent of market share from China in the current downturn scenario.
Speaking at the Golden Jubilee Technological Conference at Ahmedabad Textile Industry Research (ATIRA) here, Lalbhai said, "In order to survive current economic meltdown, the Indian textile industry should aim at grabbing part of market shares of its competitors like China, Vietnam, Bangladesh, and Cambodia. For the first time, Chinese textile industry has shown negative growth."
Talking further about opportunities for Indian textile industry, Lalbhai said, "So far China has acquired 35 per cent of $ 350 billion world textile trade amounting to $ 180 billion by artificial management of its currency. But now, while the Indian currency has depreciated against the US dollar, Chinese currency has appreciated. If China blinks by atleast 10-12 per cent, it offers Indian textile industry huge opportunity to grab a part of the market share. Currently Indian textile i s valued at $ 22 billion which can grow by three times to $ 60 billion."
The conference was jointly organised by Ahmedabad Textile Industry Research Association (ATIRA), Ahmedabad, Bombay Textile Research Association (BTRA), Mumbai, North Indian Textile Research Association (NITRA), Ghaziabad and South Indian Textile Research Association (SITRA).
On the other hand, JN Singh, joint secretary, Ministry of Textiles, Government of India said, "While the textile industry, especially the exports, have been hit by the meltdown, the current scenario will take atleast 1-2 years to improve. However, unlike China whose textile exports form 40 per cent of its GDP, India's textile exports form only 18 per cent of GDP. In a way, India's low dependence on exports is helping it in these times."
Meanwhile, Lalbhai also urged all the stakeholders of textile industry to unite and present their grievances in one voice.
"What we need is not a ginner, processor or a garment manufacturer rushing to government individually for pitching their demands rather the whole value chain in the textile industry should speak up in one voice so that a comprehensive policy can be formulated by the government."
