The example cited in the article is German luxury clothing manufacturer Marc O’Polo, which placed a considerably large order with an Indian supplier called Warsaw International instead of its usual Chinese supplier.
“We have a huge order. It’s a litmus test for us and the country. If we crack it, then gates open for more global brands to increase their India sourcing,” said the owner of Warsaw International.
“Our buyers have told us that this year sourcing from India will be much higher than last. We will know about the actual size of increased orders in a couple of weeks. We are just opening up after the lockdown,” said a representative from another garment export company, KRP Mills.
The Times of India reported that China’s largest operation shifting to India is Carter’s, a major baby clothing brand that chose India’s supplier SP Apparels, to develop a new fabric. If SP Apparels achieves its goal, for which it is receiving advice from its partners in Taiwan and South Korea, in addition to receiving assistance from the Indian government, it will be a great opportunity for the company and for the country, since this will open the doors for more international brands to be encouraged to move their production to India.
The good news for the Indians, is not a surprise, since it comes at a time when India is calling to boycott China after the incident in the Himalayan border where the People’s Liberation Army [the army of the Chinese Communist Party (CCP)] killed over a dozen Indian soldiers.
But India is not alone. Although under two completely different premises, the United States government also initiated a gradual process to reduce and eventually end its dependence on the CCP. Through tax incentives and the slogan of “America First,” President Trump has encouraged American manufacturing companies to move their factories from China to the United States to strengthen domestic industry and regain jobs.
The Trump administration initiated this process most aggressively after the CCP Virus pandemic exposed America’s dependence on the CCP for its pharmaceutical industry, although during the 2018 trade war with the CCP, President Trump had already begun taking steps to balance trade with the CCP. Similarly, India’s Prime Minister Modi has also made it one of his priorities not to rely on any foreign nation.
For reasons associated with national security and mainly due to the intense espionage activity by the CCP through applications made in China, both countries have taken similar measures against the CCP: India banned a series of dubious Chinese applications, including the popular video app TikTok, while in the United States the deadline is approaching for a U.S. company to buy TikTok otherwise it would also be completely banned from operating in the country.
Thanks to pressure from the United States, Great Britain canceled the contract it had with Huawei to install 5G in the United Kingdom, overshadowing the CCP’s ambitions to dominate telecommunications in Europe.
India’s challenges to replace China in the textile industry
Given the increase in demand for textiles from India, India Today published a report on what challenges India faces in order to replace China, given such a scenario.
“The textiles sector in India is beset by underproductivity, outdated machinery, and a distorted duty structure that encourages import of high-value apparel instead of raw cloth that can be turned into value-added garments for the international market. Wages, too, have been on the rise in India, adding to costs,” India Today noted.
“Moreover, India continues to focus on cotton fabric when the world is moving toward man-made fiber that is both convenient and cost-effective,” the article added. The deal struck by India’s SP Apparels with Carter’s babywear involves man-made fibers.”