Indian garment manufacturers are targeting the Chinese low-cost material

Chinese yuan and the dollar exchange rate depreciation to help guide the clothing company issued a low price from China to imports.

Increase in orders this year, apparel companies in the next season to increase their profits. However, the stability of the Indian rupee in the past few months led to increased importation of finished products that they consider the economy, import fabric from China.

At the same time, exporters that currently orders, negotiate the implementation of the orders in the coming months will be more difficult, Gokaldas images JN Hinduja said the company’s chairman. Weakness in the rupee, the Indian textile start cheap, so they can search for fabrics from China. But in the current situation, exporters sourcing fabrics from China to open up the choice of fabrics in China 5-10% less expensive than India.

The garment industry, the fabric costs account for 60% of sales price. Industry estimates indicate that the source of apparel trade, 60% cotton, while the rest made up by man-made fibers, which account for a large share of polyester.

In India, cotton is still a cost appropriate purchases, other fabrics, knitted fabrics such as polyester and blended fabrics imported from China, lower prices, exporters said. India, not all fabrics can be replaced. India’s cotton is always a low price. But on the other fabrics for the processing of their processing difficult than in China.

Industry believe that the rupee’s appreciation against the textile industry has formed, the textile industry is India’s second largest industry of employment generated, after the agricultural sector, in 2015, the Indian textile industry are expected to reach 110 billion rupees, including 450 crore exports. Those who import fabrics to promote cost savings.