What Impact Yuan devaluation can have on Indian textile industries?

A Sneak Peak – What is Yuan Devaluation?

China's Central Bank, devalued its own currency by close to 6% earlier this week, simply to boost exports in an attempt to recoup from the slowdown in its domestic economy and recent stock market crash. 

The Impact- What It means for India

The recent devaluation of Chinese currency Yuan, is called to be a bold move on the part of its Government, considering the fact, that while it will boost the Chinese exports, this move will eventually harm a large section of other markets, worldwide. In fact, this came as a blow to the Indian export market given the situation that the markets have already been going week in the recent past due to the recessionary conditions in the global arena! Now the question arises, where is it that it hurt the most? Sadly the answer is not just singular. This move on China’s part is understood to interfere with India’s textile industry, chemicals, metals, consumables as well as the e-commerce sector. Further the depreciation in Yuan’s value may cause Chinese people to opt local brands over imported ones. India will face substantial challenges due to this situation because china is a big market for goods such as cotton copper and chemicals exported from India. If china strategically keeps reducing the value of its currency in comparison to rupee, Indian markets might get flooded with cheaper Chinese goods available in the market.

Five Ways to Make Profits from Your Surplus Textile Stocklot

Running a business is about closing deals, completing order and delivering the materials in order to earn profits, though an inevitable part of business is also dealing with the excess inventory. This overstock may result from a number of heads such as closeouts, changes in packaging, cancellation of orders, liquidations, bankruptcies and other unforeseeable aspects. While excess inventory creates a burden on the business owner, it also comprises of cost of storage and runs the risk of decrease in the original value of the merchandise. Moreover, the risk of the stock lot becoming outdated is always there.

However, not all is as gloomy as it sounds. There are some outstanding yet simple ways of getting rid of the excess stock, especially surplus textile. Take a look.

Upcoming Trends for Home Furnishing Textiles

Trends for Home Furnishing Textiles

In the present times, home furnishing textiles are all about creativity, styling and colour coordination. The markets are flooded with the choicest of textures and colours, and just so that you don’t miss out on the more sought after designs, here’s a quick look at the leading trends for the current year 2015-2016. And, believe it or not, it’s the simplest of them all, the colours that lay the most pivotal role in defining these trends.

How the Government Policy Has Impacted Indian Export Industry – Key Updates

In the past years, especially in 2013-14, Foreign Trade hasn't been the strength of the Indian Economy. The worst hit was the merchandise exports, all thanks to the petroleum products, which played spoilsport in this steady downfall. Not just this, a lot of sectors that have been the major contributors to India's total export basket have shown poor performance. These sectors include gems and jewellery, chemicals, engineering goods, electronic goods.

However, not all is gloomy. In fact, the World Economic Outlook published by the IMF and the World Bank forecasts that India's economy may rise to 7.5 percent in 2015 as opposed to 7.2 percent in 2014. Exchange rate dynamics and geopolitical risks will be playing a major role in the same, and hence, it is extremely important for India to exhibit reasonable growth in exports.

Much to the delight of the small scale and medium scale exporters and stock lot suppliers, the Foreign Trade Policy for the term 2015-2020 is focuses on improving the ease of doing business. In addition, the policy lays down a clear road map for exports for the coming years. Here, the government has particularly laid emphasis on trade facilitation. Its plan of action includes cutting down the time and transaction costs required in exports by moving towards digitization and paperless working in a 24 X 7 environment. This is not all. In an effort to ease the entire process for merchandise and textile suppliers in India, a total of five schemes have been merged into one single scheme namely Merchandise Export from India Scheme. This will not only help to streamline the process for merchandise exports as well as service exports, but will also be more in line with the WTO rules.

Moreover, the new FTP aims at integrating India's export strategy with the flagship 'Make in India' programme. It seeks to promote the indigenous capital goods production by reducing Export Obligation for domestic procurement under EPCG scheme, by almost 15 percent. Also, it is proposed to give a higher level of rewards to products with high domestic content and value addition.

Meanwhile, it has been reported the government is set to reintroduce the interest subvention scheme, which lapsed in April last year, soon for some labour intensive sectors. This will be a welcome change, especially for the suppliers with surplus stock. Even in the earlier terms, this scheme has proved its mettle by being extremely beneficial for the small and medium enterprises engaged in exports. The FTP, therefore, rightly, wants our exporters to get prepared to run on competitive advantage instead of expecting tariff sops to come their way.

While the government is taking steps to bring about more than just a positive change for the Exporters, it is up to the small and medium scale enterprises to step up and work in tandem with the newly introduced schemes to extract the maximum possible benefits.

Article Originally Posted On: Article Base