By Hrushikesh Takbhate
The world of textiles is witnessing a dynamic transformation, and at its forefront are the yarn markets of India and China. These two nations, known for their rapid economic growth, have become pivotal players in the global textile arena, marked by challenges and promising opportunities that paint a vivid picture of their journeys.
India Yarn Market: Weaving Success Amid Challenges
In the intricate tapestry of India’s textile industry, the yarn market holds a crucial thread. Bangladesh emerges as the leading destination for Indian cotton yarn exports in terms of value, while the combined force of China and Bangladesh accounts for a substantial 50% of India’s yarn exports in quantity. A surge in Indian cotton yarn and home textile export orders serves as a beacon of hope, signifying a positive upswing in the market. Envisioning a bold future, the Indian textile industry anticipates exporting textile goods worth a staggering US$ 18 billion in the upcoming fiscal year.
A tale of resurgence unfolds as the Indian spun yarn market breaks free from a nine-year declining trend, soaring to new heights in 2019. However, challenges persist, echoing the need for diversification across markets where India’s yarn import shares remain under 20%. This adaptive strategy promises to unlock fresh avenues of growth.
China Yarn Market: A Revolution Unravelled
The heartbeat of China’s textile prowess lies within its yarn market. Claiming the title of the world’s largest cotton yarn importer, China’s influence reverberates across the global landscape. As the global cotton yarn market charts an impressive trajectory, poised to grow from USD 82.81 billion in 2023 to a projected USD 100.68 billion by 2028, China stands firmly at the helm.
A seismic shift is underway, tracing China’s relocation of cotton production to the distant Xinjiang region. This move, though marked by geographic hurdles, has ignited a domino effect that reshapes trade patterns and supply chains. A notable change emerges as China gracefully bows to Vietnam and Indonesia, entrusting them with the title of the largest importers of cotton yarn. Their duty-free access sets them apart, whereas Indian yarn carries a 3.5% import duty.
Impact on the Global Textile Fabric: Unravelling the Threads of Influence
The ripples from India and China’s yarn markets reach far beyond their borders, touching the global textile industry. The Indian textile domain faces challenges as discerning consumers in Europe, the US, and other key markets cut back on clothing expenditure. Yet, the global cotton yarn market’s projected growth reflects a promising narrative, driven by heightened demand, a growing consciousness of sustainability in fashion, and unwavering government support.
China’s strategic shift in cotton production wields transformative power, redefining trade patterns and supply chains. This metamorphosis echoes across the fabric of the global market, leading to amplified demand for cotton yarn in China and Bangladesh. The outcome? Elevated prices in the Indian market.
A resilient spirit characterizes the Indian textile industry, as it strives to extend its market reach in countries where its yarn imports are less than 20%. This adaptive approach, rooted in diversification, is poised to fortify India’s presence on the global stage.
In the realm of textiles, the threads of India and China are woven into a rich tapestry of evolution. As challenges intertwine with opportunities, these yarn markets stand as prime exemplars of adaptability, resilience, and innovation in a dynamic industry poised for a vibrant future.
Performance of Indian and Chinese Yarn Markets: A Deeper Look
In the backdrop of the ever-evolving global textile industry, the performance of the Indian and Chinese yarn markets in the last year unfolds as a compelling narrative of shifting dynamics and influential factors. The yarn markets of these two economic giants have experienced significant changes, propelled by various contributing factors.
Indian Yarn Market: Navigating New Horizons
The recent surge of Bangladesh as the largest export market for Indian cotton yarn has ignited a paradigm shift, dethroning China from its long-held position. This noteworthy transition not only underscores changing demand patterns but also highlights India’s adaptability in catering to emerging markets.
A remarkable uptick in Indian cotton yarn export orders and home textile export orders further testifies to the market’s resilience and evolving trends. The projection of exporting textile products worth a substantial US$ 18 billion in the fiscal year 2013-14 unveils a determined trajectory of growth, bolstered by a surge in demand.
A call for market diversification resonates through the industry, advocating a strategic focus on countries where India’s share of yarn imports stands below 20%. This prudent approach speaks volumes about the industry’s intent to embrace new opportunities while safeguarding against dependence on specific markets.
Chinese Yarn Market: A New Equilibrium
As the largest global importer of cotton yarn, China has traditionally wielded significant influence. However, a pivotal transformation has unfolded, marked by China relinquishing its position to Vietnam and Indonesia as the largest importers of cotton yarn. This power shift is a result of their favorable duty-free access, while Indian yarn grapples with a 3.5% import duty.
The projection of the global cotton yarn market’s exponential growth from USD 82.81 billion in 2023 to a staggering USD 100.68 billion by 2028, exhibiting a CAGR of 4.0%, accentuates China’s strategic positioning. This foresight into market trends showcases China’s intent to stay at the forefront of global textile dynamics.
Yet, the seismic shift in China’s cotton production landscape, gravitating toward the distant Xinjiang region, has reverberated throughout the industry. This ripple effect has reshaped trade patterns and disrupted established supply chains, yielding a new equilibrium that carries far-reaching implications.
Contributing Factors: A Tapestry of Influence
Several interconnected factors underpin the trajectory of both markets. The rise of Bangladesh as a dominant export destination for Indian cotton yarn illuminates the evolving demand landscape, while rising demand from China and Bangladesh has lifted prices within the Indian market, triggering significant industry shifts.
The global cotton yarn market’s projected growth underscores the sector’s buoyancy, driven by heightened demand, sustainability concerns in the fashion realm, and robust government backing for the expansion of domestic textile endeavours. Additionally, the pivotal shift in China’s cotton production, coupled with its consequential impact on trade patterns and supply chains, reverberates globally.
The substitution of India by Vietnam and Indonesia in the list of top cotton yarn importers further underscores the strategic significance of duty-free access in shaping trade dynamics.
As the yarn markets of India and China continue to traverse uncharted territories, this intricate interplay of factors paints a vivid picture of adaptation, innovation, and strategic foresight, paving the way for an exciting future in the world of textiles.
