Home / Knowledge / News / Apparel/Garments / Hong Kong textile cos eye Make in India to cut costs
Hong Kong textile cos eye Make in India to cut costs
22
Mar '16
Courtesy: Hong Kong Trade Development Council
Courtesy: Hong Kong Trade Development Council
India is rising, not only as a new choice of relocating labour-intensive industries from China, but also as a retail market of good potential, says a research report by The Hong Kong Trade Development Council (HKTDC).

In recent years, the sustained rise in production costs on the Chinese mainland has eroded the profit margins of many Hong Kong companies with labour-intensive factories located on the Chinese mainland, prompting them to seek alternative production bases elsewhere.

While Southeast Asian countries offer many choices, the HKTDC report says India offers many advantages as an alternative production base, along with the added advantage of having a domestic market of great potential.

According to the report, the majority of Indian garment producers are focused on the domestic market, as their product quality was generally lower than the standards required by overseas importers.

Despite this, many big Indian exporters have successfully lined up with international buyers, including department stores, retail chains and brands.

The paper was written after a recent field trip to India that included factory visits and interviews with garment manufacturers.

In the four years to 2014, India's garment exports increased at an average annual rate of 12 per cent, surpassing China's 9 per cent, in line with Bangladesh's 13 per cent and eclipsed by Vietnam's 17 per cent.

With advantages of raw materials and prospects of vertical integration, India is a strong garment exporting country and a location worth considering for factory relocation in relation to labour-intensive manufacturing, such as garment-making.

The report pointed out that while China is the undisputed world leader in exporting textiles and garment products, many have overlooked India's position as the world's second biggest exporter of textile and garment products in 2014, selling a total of $36 billion, during the year, far behind China's $399 billion.

For textile exports alone, India was second after China in 2014, with a share of 5.8 per cent of the global market, compared to China's enormous 35.6 per cent share.

HKTDC says it is not surprising that the bulk of garment manufacturing in India is for the domestic market, supported by the country's huge capacity in textiles production.

India stands out to be a substantial exporter in both garments and textiles. In 2014, India imported textiles worth only $3.8 billion, lagging much behind Vietnam's $12 billion, Bangladesh's $6.8 billion, and just ahead of Cambodia's $3 billion, the report said. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Textiles | On 22nd Jun 2017

Hpfabrics opening production facility in Forsyth County

Hpfabrics, manufacturer of raw fabrics, is opening a new production...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search