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Is Indian Silk losing its sheen in the Global Market?
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By
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Fibre2fashion.com
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- What are the key factors for Chinas performance in the
global silk market?
The
consistently undervalued Yuan had led to Chinas strong presence in silk
textile trade in major markets namely USA and European countries and Non
Tariff Barriers like formation of trading blocks like EU, NAFTA (North
American Free Trade Association), and stringent environmental regulation
of the importing countries are the main bottlenecks in a healthy growth of
silk exports.
The fabric of royalty, and prestige, now; is deeply affected
by the downturn, distressing the livelihood of thousands of weavers. 90% of Indias silk products are made on handlooms. Incomes of many weavers are deeply affected
due to the free market following Chinas entry into the WTO. After reaching a
record of Rs.3, 500 in 2007, silk exports are likely to decline to Rs.2, 000 in
2009. Despite that India is fighting for a foothold in the international market,
stronger factors tend to play a spoilsport with the country affecting the
export figures considerably.
References:
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