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Poll projects China as threat to Indian exports post-MFA
E-Tex Staff - New Delhi

When it comes to discussions about post quota regime, China is highlighted as the biggest threat to Indian business. Similar views are aired by an online opinion poll conducted by CSRWorld, a leading corporate social responsibility organisation in India. The opinion poll highlights that the Indian exporters (apparel) consider China as the biggest threat to their industry when the quota system is finished. Almost 88 per cent of the participants think that China is definitely going to be a big challenge for Indian apparel exporters.

China is becoming a major force in the textile industry with 18 per cent of the total global trade. This figure (US$ 53.3 billion) comes out to be more that India’s total exports of all products, which stood at US$ 45 billion. When China can dominate the export market under the quota restrictions, it is not hard to presume that post-quota will definitely give China a boost in its export industry which is known for cheap production due to better productivity, good infrastructure, cohesive marketing practices and lower cost of production.

In comparison, India, although having skilled manpower, excellent entrepreneurial skills and freedom of choosing business opportunities, is certainly lagging behind in the textile export market according to the export figures. The scattered nature of Indian industry, individualistic tactics of marketing, lack of unity, non-progressive labour laws and lack of role-playing by the state, hampers the development and growth of Indian export industry.

Post-quota, when the companies have freedom to source any amount of goods from wherever it is best for them, China will be a big winner due to its comprehensive display of being economically stronger and more reliable. The Indian Industry definitely needs to be more dynamic and proactive in anticipation of the quota-free regime.