China has gone through and is still going through rising labour costs. It has already doubled minimum wages for all workers and which is still rising, moving the apparel manufacturing inland, training new workers and requiring longer lead times to get the product to port. They also have the revaluation of the RMB to the USD, but the continuing rising costs now, makes China less competitive.
In a recent news statement from China, the country reported a surprise quarterly trade deficit of $ 1.02 billion, the first in six years, as it settles to rebalance its export-oriented economy to boost domestic consumption in the next five years. This deficit amount, from January to March this year, was in contrast to trade surplus of $ 13.91 billion in the same quarter last year.
Despite the changing scenario, China will still be the largest exporter of apparel to the USA and EU there is no doubt about that.
Yet, there is an opportunity for other manufacturing countries and supposedly the opportunity was for India, which was going to have increased exports of textile/apparel products. This was supposed to really give India a nice push, as they have a real competitive labour market, one of the largest cotton growers in the world, many ports to ship from, the spinning mills to process cotton, and polyester yarns/threads into textile fabrics equal to any country on the globe.
A chance to move forward by using the Textile/Apparel Industry, to try train the poor, create work which would allow a better standard of living, and allow the children of these workers to get educated and move on to higher skilled jobs.
We now have a cotton crisis, which has partially been caused by the Indian politicians; they are now taxing, restricting growth, and if the same continues it will cause shrinkage of the one industry that can assist the poor to become middle-class.
Now I read that the many Textile/Apparel organizations of India have started to voice strong objections to what has taken place, it is never too late! I hope it is remedied for all concerned.
Allow the people the opportunity to have jobs with dignity, a competitive society to try to reach a better life for themselves, and their children, this is what makes an economy grow. “You can give man a fish, he can eat for the day, or you can teach a man to fish, and he can fish for a lifetime”, (Not exact quote), but the meaning holds true.
I have stated in past articles that India, fortunately has a first class higher education system, and can easily keep up with all the sophisticated new technical industries with a very large part of its potential work force. This is fact and already proven, but to tax the Textile/Apparel Industry will only stifle its growth in the world market.
To top this all off, now that a larger middle class is growing, and retail investment is also increasing to capture this expanding monetary wealth, this is becoming another road block to the consumer that is working hard and desires to enjoy the finer things in life, as it is being heavily taxed.
This combined with the restrictive investment regulations, just slows down the growth of bringing selection of world products to a population desiring to be able to purchase them.
BIRTH, TAXES, DEATH, seems to still be the MANTRA, of facts for humans on this earth, but during this time period it would be nice to enjoy, and have the opportunity to go for a good lifestyle.
What is going on now will cause consolidation and the big will get bigger, and the other will just fade away, and not survive. It would be nice when GOVERNMENT, ACADEMIA, and PRIVATE ENTERPRISE communicate with each other, so we can educate our youth for jobs that are needed, a Government that supports these opportunities, and allows private enterprise growth opportunities with a workforce that is, or can be trained, and equipped to handle all the vital needs to have a good and peaceful life.
India has the wealth in its people, this is the greatest asset any nation can hope to have, its natural resources can eventually be exploited or run out, but its people creating, growing, and manufacturing product for themselves, and the world to buy, is how nations grow to become recognized as a place of opportunity and peace.
I BELIEVE IT IS NOT TOO LATE… but in this day and age things move faster than ever before!
