Indian Textile Orders Transferred to China

  • Foreign trade orders have soared.
  • Since September, many large-scale export textile companies in India have been unable to guarantee normal delivery due to the epidemic.
  • Public information shows that India is the world's largest cotton-producing country, the world's largest jute producing country, and the world's second-largest silk producer.

As the epidemic cannot be effectively controlled for a long time, many factories in India have no way to start construction as scheduled, so more and more textile orders are canceled or moved to other countries such as China. According to the Dyeing and Finishing Encyclopedia, many domestic garment manufacturing orders have been scheduled for May next year.

Textile workers in India

“As a merchant mainly engaged in domestic trade, the last time we came into contact with Indian orders was four or five years ago.”

Wang Huan, the sales manager of Hebei Gaoyang Rongtian Textile Co., Ltd., told the 21st Century Business Herald that since September, his foreign trade orders have soared. He has not encountered such a hot market after 20 years of being a factory.

It is worth noting that the largest increase in orders is the domestic trade wholesale at 1688 platform. “In the last month, orders for towels reached 2 million, and many of them ended up in India.”

Since September, many large-scale export textile companies in India have been unable to guarantee normal delivery due to the epidemic. Many orders originally produced in India have been transferred to China for production, and some factories that received orders have begun to purchase directly in China. Chinese textile factory directors began to frequently receive multiple orders from India on the domestic trade platform.

Turnover Skyrocketed 5 Times

A home textile factory named “Jianmu Qingyue”, also located in Gaoyang, Hebei, also received a large order from India on the domestic trade platform 1688. “It’s the first time it has received an order from India in the three years since it opened the factory, requiring more than 5,000 bath towels,” said Shi Songlin, the general manager of the factory.

Henggang Home Textiles, a home textile factory in Jinhua, Zhejiang, received an order from ZARA an international brand on the domestic wholesale platform of 1688-hundreds of thousands of tablecloths, which accounted for 60% of the company’s total output this year. Its turnover has soared 5 times over the same period last year.

“These tablecloths were all produced in India before. I didn’t expect ZARA to come. I didn’t dare to think about it before. I have never seen so many orders.” said Shu Jiewu, general manager of Henggang Home Textiles.

The heads of the above three home textile factories all stated that in order to ensure the completion of Indian orders, they have opened new production lines, expanded their staff by two to several times, and worked overtime every day and overnight production.

Public information shows that India is the world’s largest cotton-producing country, the world’s largest jute producing country, and the world’s second-largest silk producer, with its yarn production capacity accounting for 22% of the world.

China garment factory

In 2019, the size of the Indian textile and apparel market is around $250 billion. The textile and apparel industry is also one of India’s largest sources of foreign exchange income, accounting for about 15% of India’s total export income.

From 2017 to 2018, India’s textile industry accounted for 7% of India’s total industrial output (by value), 4% of India’s GDP, and more than 45 million employees, contributing 13% to India’s export revenue. Between 2000 and 2018, a foreign direct investment worth $2.97 billion was attracted.

After the outbreak, India has not done well in prevention and control. The latest data shows that on October 15, India had 67,708 new confirmed cases, and the number of confirmed cases rose to 7,370,98; there were 680 new deaths and a total of 111,266 deaths.

As the epidemic cannot be effectively controlled for a long time, many factories in India have no way to start construction as scheduled, so more and more textile orders are canceled or moved to other countries such as

China. According to the Dyeing and Finishing Encyclopedia, many domestic garment manufacturing orders have been scheduled for May next year. On October 13, the 21st Century Business Herald made an interview report on this.

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Joyce Davis

My history goes back to 2002 and I  worked as a reporter, interviewer, news editor, copy editor, managing editor, newsletter founder, almanac profiler, and news radio broadcaster.

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