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Indian apparel producers seek Chinese fabrics
Nov '09
The Indian rupee is appreciating at a great speed against the US dollar which is raising concerns amongst the apparel sector, since it increases the cost of raw materials. This has led to Indian apparel manufactures flocking to China to buy fabrics.

This is because; Chinese fabrics are cheaper by 5-10 percent, when compared with prices prevailing in Indian markets. This is expected to help the industry prune costs and at the same time also, stay competitive in overseas markets.

Fabric costs account for 60 percent in the manufacturing cost of a garment and a 5-10 percent difference in the purchase price of a fabric means a big deal for the industry, which is either managing on marginal or even zero profits since the last one year.

The textile industry in India is the second biggest employment generator in the country and as per projections the textile industry is going to be a US $110 billion sector by 2015, which includes $55 billion worth of exports.

Fibre2fashion News Desk

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