GENERAL PROBLEMS OF THE FIBRE AND TEXTILE INDUSTRIES FIBRES & TEXTILES in Eastern Europe Eastern in TEXTILES & FIBRES Two of Asian Powers:ChinaandIndia.Prospects fortheirFurtherDevelopmentonGlobal Markets. TextileIndustry the of Characteristics J. Otto A, Kopeć M, Greta A, Antczak is experiencing production andorganisa tens ofmillionspeople. This industry al economy, providingemployment to has becomeanessential part of theglob to thepresentday. The place inhumanlife,fromhistorical times Clothing undoubtedly has an important global economy. This regionisunder Region togrowintoa Asia-Pacific causingthe undoubtedly is Immediately behind itisIndia, which ducer and exporter of textile products. world playertoday, beingthelargest pro around theworld,China is the dominant the industry is geographically dispersed India, Pakistanand Vietnam. Although textiles and clothing areprimarily China, Traditional giants intheproductionof ment patternsofthissector[3-5]. develop the shaping in role a significant i.e. price, and finally quality, have played three to four decades, trade restrictions, the importanceofthisindustry. Inthelast mutual relationsaswellinrelation to tude of employersandemployees both in deepening tradeactivity changes theatti tional changes ona Introduction Faculty ofEconomicsandSociology, Department ofEuropeanIntegration * 2 Marianna Greta

e-mail: [email protected], Lodz UniversityofTechnology, Department ofWorld Economy and ProductionEngineering, and InternationalMarketing, ** Anna Antczak

and EuropeanIntegration, global scale, and the e-mail: Agata Kopeć Faculty ofManagement Jacek Otto new center ofthe

1 2019; 27,5(137): textile industry [email protected] University ofLodz, Lodz, Poland Lodz, Poland 9-14. 2,** 2,* 1 1 DOI: ------, , ,

10.5604/01.3001.0013.2895 their FurtherDevelopmentonGlobalMarkets Asian Powers:ChinaandIndia.Prospectsfor Characteristics oftheTextile IndustryofTwo Key words: global marketofdevelopingcountries. This allowed liberalisation. for further development its of this and branch of textiles the economy and in participation in trade the for arrangements international to attention draws a played has industry textile and fibre For economy. the centuries global the on exert they impact the discuss to and India and China – field The aim ofthisstudyistocharacterise thetextile industry ofthetwoglobalgiantsinthis Abstract DOI: n n powers: textile both of specificity the describing The tives. This isthemaingoalofstudy. in the context of development perspec also region Asia-Pacific the in guides as of two Asian powers:China andIndia to trace and analysethetextile industry In thissituation, it would beadvisable lows themtostayinglobalmarkets. but of increasingly better quality. This al view –atlowcostandona products –fromaneconomic point of standard produce They profits. huge ate the leadership ofChinaandIndiagener laws, countriesof Asian regionunder uct norcompliance withworkingtime Not caringabouttheecologyofprod n n ing factors: In addition,thefollowingarecontribut n n n native governments,asfollows: internal factors basedonthesupport of banks. Inaddition, there are favorable resources in global companies, including financial considerable invests region the gies. This ismainly due tothefactthat ing, inter alia, standard textile technolo development in varioussectors,includ going dynamic and long-term economic

“complete supply chain”. opment in the aspect of the so-called importance of textile industry devel in India–byemphasising the roleand in China–throughthesilkindustry; structed. the latestwesterntechnologyisrecon staff; cheap workforceandbetter trained training andconsulting. support forentities starting a low-interest loansandtaxcredits; sub-objectives of the study comprise 10.5604/01.3001.0013.2895

textile industry, fibre industry, China,India,tradeliberalisationintextiles. large scale, business; ------petitiveness throughtraditionalsectors. as well as towardsmodernity and com a wards Both ChinaandIndiaaremovingto ry. was factory weaving first the 1872, In Shanghai) at the endof19thcentu peared on the Chinese coast (including ap factories textile The first export. and largest intheworld,bothproduction the also are which textiles, and fibres are Traditional branches oflightindustry of the American economy[11]. ly, China’s economy amounts to 68.5% will overtaketheUSA in2022.Current Standard Chatered Bank, ChineseGDP According tothelatest forecasts bythe the transferofnewtechnologies [15]. as lowlabour costs and taxes as well as conditions for foreign investments, such been madepossible by creating favorable GDP. This dynamic development has was morethantwice as highJapan’s GDP amounted toUSD11.1 trillion and terms ofnominal GDP. In2015,China’s second largest economy in the world in China overtookJapanandbecamethe od wasover10%intheGDP. In2010, rate of economic growth in this peri The average specificity”. a Chinese with economy termed as “a from a caused transformation and transition 1978, economic reforms began, which fastest growing onthe global market. In Chinese economy is currently one of the of theworld’s population[12],andthe ern Asia, whosepopulation is over20% China is a A bit ofhistory

market inChina Characteristics ofthetextile key role for humanity.The for role key centrally planned economy to an presence intheglobaleconomy country inCentral and East market economy study also study ------9 In the beginning, Chinese products were associated with very low quality, and their export caused numerous conflicts and accusations of illegal practices and anti-dumping proceedings. Currently, while maintaining low prices, China has seen improved quality and become a global leader in the textile sector5. In 2004, Chinese textile exports to the European Union amounted to almost EUR 2 billion. Clothing worth almost 13 billion euros was also exported. The constant trend of export growth is about 10% per year 6. Key centers of the Chinese textile industry are focussed on the Yangtze estuary (Shanghai, Zhuzhou, Hongzhou) and the lower reaches of Huang He (Beijing, Tianjin, Qingdao). In north-west China, the main textile centers are located in the province of Xinjiang - Urumqi, and Hotan7. Figure 1 presents the distribution of these centers.

Fig. 1. Main centers of the textile industry in China the lower reaches of Huang He (Beijing, Tianjin, Qingdao). In north-west China, the main textile centers are located in the province of Xinjiang – Urumqi, Kashgar and Hotan [12]. Figure 1 presents the distribution of these centers.

Currently, the cotton industry, which is the core of the textile industry, ac- counts for about 95% of Chinese tex- tile production. China, alongside India, is one of the largest producers of this production. In Figure 2, the main areas of world cotton production are marked, which, as is raw material, and they together account evident, are in the region of Southeast Asia. for over half of the world’s cotton pro- duction. In Figure 2, the main areas of

world cotton production are marked, which, as is evident, are in the region SourceFigure: own 1. elaborationMain centers based of on the Google textile Maps industry, 20.04.2018. in China. Source: own elaboration based on of Southeast Asia. Google Maps, 20.04.2018. Fig. 2. Main areas of world cotton production Currently, the cotton industry, which is the core of the textile industry, accounts for Over the years, China has been first in cotton production, but it has recently about 95% of Chinese textile production. China, alongside India, is one of the largest been gently overtaken by India. The ma- producers of this raw material, and they together account for over half of the world's cotton jority of cotton production in these countries is not intended for export, but – interestingly – for internal use. China’s

5 http://www.psz.pl/124-polityka/aleksander-kobylka-spor-o-tekstylia-unia-europejska-chiny-czy-to-zlo- demand for cotton is even greater than konieczne, 20.03.2018 r. domestic production, which also means 6 http://trade.ec.europa.eu/doclib/docs/2005/july/tradoc_124107.pdf, 20.04.2018 r. 7 https://encyklopedia.pwn.pl/haslo/Chiny-Gospodarka;4573913.html, 20.04.2018 r. that China is also the largest cotton im- porter in the world, mainly due to the in- ternal policy pursued. In China, this raw material is treated as a component of re- serves. As a result, Chinese cotton stocks account for 60% of the total global stocks of this raw material. The cotton harvest, sourceFigure: http://bossafx.pl/index.jsp?layout=fx_2a&page=0&news_cat_id=3799&news_id=46279, 2. Main areas of world cotton production. Source: [9]. 22.04.2018 r. like every agricultural commodity, de- pends on weather conditions; however, Over the years, China has been first in cotton production, but it has recently been in recent years the weather has had less established, and in the early eighties of the ever-improving technology that made and less influence on changes in cotton gently overtaken by India. The majority of cotton production in these countries is not intended the last century, mechanised factories China products the cheapest in the world. prices. China’s policy towards cotton forappeared. export, but The - interestingly interwar period - for sawinternal inten use.- China'sIt was demand calculated for cottonthat exports is even of greater Chinese than reserves, which in recent years have sig- nificantly increased, reaching a record domesticsive development production, ofwhich the alsotextile means industry that Chinatextiles is also are the growing largest atcotton a rate importer of 20-30% in the in China, with a simultaneous decline per year. level, has a much greater impact on the world, mainly due to the internal policy pursued. In China, this raw material is treated as a in the share of this branch of industry in prices of this commodity [9]. componentWestern Europeanof reserves. countries. As a result, In 1927,Chinese the cotton China stocks as account the ’cotton for 60% power’ of the total global China as a ’silkworm power’ stocksnumber of this of rawmechanical material. Thespindles cotton in harvest, Chi- likeIn everythe beginning, agricultural Chinese commodity, products depends were on na was almost 5 million, of which half associated with very low quality, and Another important branch of the Chi- weather conditions; however, in recent years the weather has had less and less influence on belonged to foreign capital. Subsequent their export caused numerous conflicts nese textile industry is the indus- changeschanges in cottonin the textileprices. industryChina's policytook place towards andcotton accusations reserves, whichof illegal in recent practices years and have try, which dates back to the the third significantlafter they Secondincreased, World reaching War, a recordwhen level,the hasanti-dumping a much greater proceedings. impact on the pricesCurrently, of this millennium BCE. The discovery of silk construction of numerous factories be- while maintaining low prices, China in China initiated the famous historical commodity.8. gan in China and the production potential has seen improved quality and become , which connected China with in Kong increased [4]. The textile a global leader in the textile sector [16]. the Middle East and Europe. Silk has become the symbol of China, which ex- 1.3industry China as has a ’ silkwormbecome powera key ’ branch of In 2004, Chinese textile exports to the the Chinese economy since the intro- European Union amounted to almost cels in the production of this, the most duction of economic reforms in 1978, EUR 2 billion. Clothing worth almost luxurious natural fibre in the world. Silk when China evolved from an exporter 13 billion euros was also exported. stands out from other natural textile

8 of textile raw materials to that of tex- The constant trend of export growth is materials in its lightness and durability. http://bossafx.pl/index.jsp?layout=fx_2a&page=0&news_cat_id=3799&news_id=46279, 22.04.2018 r. tile products, mainly cotton. At the turn about 10% per year [18]. Today, it is widely used in clothing, fur- of the eighties and nineties, this sector niture and upholstery, and is also mixed accounted for 30% of Chinese exports, Key centers of the Chinese textile indus- with other fibres in the production of which was mainly due to the very cheap try are focussed on the Yangtze estuary fabrics. The em- but well-educated workforce as well as (Shanghai, Zhuzhou, Hongzhou) and ploys over one million employees. Chi-

10 FIBRES & TEXTILES in Eastern Europe 2019, Vol. 27, 5(137) na dominates the global silk industry as Table 1. Global production of silk in tonnes. Source: [8]. the world’s largest silk producer, export- Year 2010 2011 2012 2013 2014 2015 er and consumer at the same time. Cur- Country rently, Chinese production is still more Bangladesh 40 38 42.50 43 44.5 44 than 70% of the world’s silk production Brazil 770 558 614 550 560 600 and 90% of exports. Table 1 lists the Bulgaria 9.4 6 8.5 8.5 8 8 major global silk producers alongside China 115000 104000 126000 130000 146000 170000 China and India. Colombia 0.6 0.6 0.6 0.6 0.5 0.5 Egypt 0.3 0.7 0.7 0.7 0.82 0.83 In recent years, the economic growth India 21005 23060 23679 26480 28708 28523 in the Chinese silk industry has slowed Indonesia 20 20 20 16 10 8 down slightly due to international and Iran 75 120 123 123 110 120 domestic factors. According to statis- Japan 54 42 30 30 30 30 tics published by the National Cocoontraditional North tools Korea and methods.0 On the 300other hand,300 you can see300 modernity320 and technology,350 that Silk Office, in 2014 China produced South Korea 3 3 1.5 1.6 1.2 1 146 000 tonnes of silk, which is a is,de -the „organisedPhilippines sector‟, using1 modern machines1 0.89 and techniques.1 1.1 1.2 crease of 13.64% compared to 2010. Currently,Syria the value of 0.6the Indian textile0.5 industry0.5 is estimated0.7 at about0.5 180 billion0.3 dollars, Chinese exports also fell. According to Thailand 655 655 655 680 692 698 China Customs, in 2014, the total valuewith theTunisia prospect of reaching0.12 223 billion3 dollars 3.95by 2021 (Figure4 3). This4 sector is the3 second of exports of natural raw materials fromlargest employer,Turkey immediately18 after agriculture,22 providing22 direct25 and indirect32 employment30 to China was USD 3.388 billion, which is Uzbekistan 940 940 940 980 1100 1200 a decrease of 8.32% compared to 2010.approximately Vietnam 105 million 550people. It creates500 jobs450 both within475 its own industry420 and450 in related In 2014, the value of natural silk andsectors. MadagascarIt accounts for 5%16 of GDP in16 India and18 14% of the18 general 15industrial production5 satin exports amounted to USD 908 mil- Total 139158.02 130285.8 152910.14 159737.10 178057.62 202072.83 lion, which is a drop of 9.62% comparedindex (IIP). to 2010. In turn, the value of exports Fig. 3. Size of the Indian textile sector (in billion dollars) of clothing and silk products in 2014 amounted to USD 1.616 billion, which is 250 a decrease of 2.59% from 2010. The rea- 223 sons for this phenomenon should be seen 200 primarily in the reduction of silk prices in China, in the fall in demand from abroad 143 and in the lower prices of cocoons on the 150 domestic market [8]. 100 89 70 78 Characteristics of the textile market in India 50 A bit of history and specificity of 0 the “completion of the implementation of the supply chain” industry 2009 2010 2011 2018 2021 India is second after China as the most populous country in the world, with over Figure 3. Size of the Indian textile sector (in billion dollars). Source: own elaboration 1.3 billion inhabitants. The countrySource is : ownbased elaboration on “A brief based Report on “ onA brieftextile Report industry on textile in India, industry ASA& in AssociatesIndia, ASA& LLP, Associates July 2015” LLP, [1]. July located in South Asia and occupies 2015the ” http://www.cci.in/file-download?file=%2FUpload%2FfldInsights%2FTextile-Industry-in- majority of the Indian subcontinent. India.pdf&mac=ZHgHS3EufeqO0tpJlts4Ett%2FjcBa3PqHFcQHpAmotSs%3DIn- ators of Indian exports, as the total ex- Currently, the value, 25.04.2018 of the Indian textile dia is one of the fastest growing coun- port of textiles accounts for about 11% industry is estimated at about 180 billion tries in the world in terms of so-called of total exports [13] (in 2015-2016 it dollars, with the prospect of reaching 223 emerging economies. The average an- Whatamounted distinguishes to USD the 40 Indian billion). textile India industry is billion is the dollars fact that by very 2021 few (Figure countries 3). This can boast nual economic growth in the fiscal itsyearso -calledthe world’s complete second supply textile chain manufacturer12 – from naturalsector and is thesynthetic second fibreslargest toemployer, the production im- of 2015-2016 was 7.6%, and the revised after China and the world’s third largest mediately after agriculture, providing di- subsequent-year forecast assumes an finishedin- producer products. of cotton (after China and the rect and indirect employment to approxi- crease of 7.1% in GDP [14]. Undoubted- EverUSA). since The ancient Indian times, textile Indiaindustry has is been very well-knownmately 105 for million textile people. products. It creates Unfortunately, jobs ly, India’s economy is moving towards diverse. On the one hand, there is a pas- both within its own industry and in relat- modernity, but without forgetting its intra -the colonialsion for traditionsperiod, the and traditional old times, textile hence industry ed sectors. in India It accounts actually for ceased 5% of to GDP exist. in It was ditions, an example of which may be notthe untilthere 1818, is the when so-called the first‘unorganised textile production sec- India plant and in14% Fort of Glosterthe general near industrial Calcutta was textile sector, which is of key importance tor’, including manual craft, operating production index (IIP). in the Indian economy. established,on a smallthat wescale, could using talk traditional about the tools rebirth of a modern textile industry. However, the real cottonand industrymethods. beganOn the in otherMumbai, hand, when you in 1854What a distinguishesmerchant set the up Indianthe first textile cotton in- mill to The textile sector in India is one of the can see modernity and technology, that dustry is the fact that very few countries oldest branches of Indian industry and at is, the ‘organised sector’, using modern can boast its so-called complete supply the same time one of the largest co-cre12 S.Belemkar,- machines M.Ramachandran, and techniques. Recent Trends in Indianchain Textile [2] –Industry- from natural Exploring and Novel synthetic Natural Dye Products and Resources, International journal on Textile Engineering and Processes, Volume 1, Issue 3, July FIBRES & TEXTILES in Eastern Europe 2019, Vol. 27, 5(137)2015, s. 34 11 right up to the final product. It has enormous potential to create new jobs not only in the sector itself but also in others, including agriculture, among others.

2.2. Segments of the Indian textile industry The indian textile industry can be divided into several segments, such as 17:  cotton;  silk;  wool;  synthetic fibres;  jute. Fig. 4. Key centers of the Indian textile industry

only in the sector itself but also in others, TEXTILES AND APPAREL ZONES including agriculture, among others.

Kashmir Segments of the Indian textile Ahmedabad industry The indian textile industry can be divid- Mumbai ed into several segments, such as [1]: Bengaluru n cotton; n silk; Indore n wool; n synthetic fibres; n jute.

The map above (Figure 4) presents the key centers of the textile industry in In- dia. The textile industry in the Kashmir region is primarily based on cashmere wool and silk. In turn, Ahmedabad and Figure 4. Key centers of the Indian textile industry. Source: [13]. Indore are the leaders in the cotton in- Source: https://www.ibef.org/industry/textiles.aspx, 1.04.2018 dustry. Mumbai’s cotton industry is the traditional and oldest branch of the man- fibres to the production of finished prod- already 396 factories, and by 1945 it had ufacturing industry in Mumbai, with the The map aboveucts. (Figure 4) presents the key centersincreased ofto 417.the Intextile addition, industry the cotton largest concentration of cotton plants. In industry is called the Swadeshi industry, the Bengaluru region, silk reigns. in India. TheEver textilesince ancient industry times, Indiain the has Kashmir been because region it was is developedprimarily with based local entre on- cashmere wool well-known for textile products. Unfor- preneurship and capital, and in pro-inde- The Indian government is trying to de- and silk. In turn,tunately, Ahmedabad in the colonial and period, Indore the tra are- pendencethe leaders times, thisin movementthe cotton stimulated industry. velop Mumbai's the textile sector by undertaking ditional textile industry in India actually demand for Indian fabrics in the country. a series of actions aimed at attracting in- cotton industryceased is the to traditionalexist. It was andnot until oldest 1818, branch of the manufacturing industryvestors in Mumbai, and encouraging growth and de- when the first textile production plant The declaration of independence also velopment in this sector. Key initiatives with the largestin concentrationFort Gloster near Calcuttaof cotton was plants. estab- Inhad the a largeBengaluru impact onregion, the current silk reigns.ap- adopted in the budget for 2017-2018 to lished, that we could talk about the rebirth pearance of the textile industry. India The Indian government is trying to develop the textile sector by undertakingcreate a series new jobs of and, consequently, in- of a modern textile industry. However, kept 409 out of the 423 textile factories, crease textile exports are as follows: the real cotton industry began in Mum- with the remaining 14 going to Pakistan, actions aimed at attracting investors and encouraging growth and development inn thisencouraging sector. new entrepreneurs to in- bai, when in 1854 a merchant set up the along with 22% of the land for growing vest in such sectors as knitwear, and first cotton mill to start trading internally cotton. However, some plants have been increasing the allocation of funds from and abroad. A significant part of the early closed. For several years after the decla- USD 20.4 billion to USD 36.6 billion; factories dealt with the trade of yarns and ration of independence, Indian factories n raising the qualifications of the work- 17 textiles on the home, Chinese and African had to import cotton from Pakistan and A brief Report on textile industry in India, ASA& Associates LLP, July 2015, http://www.cci.in/file-force by co-financing to the amount of markets. Another important date in the other countries. Soon, however, between download?file=%2FUpload%2FfldInsights%2FTextile-Industry-in- USD 330 million; modern history of the textile industry was 1951 and in 1982 the number of spindles India.pdf&mac=ZHgHS3EufeqO0tpJlts4Ett%2FjcBa3PqHFcQHpAmotSs%3D n plans to introduce the so-called mega in 1861, when A cotton mill was built in doubled from 11 million to 22 million, package for the sector, including, Ahmedabad, quickly becoming the big- while in subsequent years 1989-1990, it gest rival of the factory in Mumbai. In increased by over 26 million [7]. among others, the modernisation of the second half of the nineteenth centu- obsolete looms, tax breaks and mar- ry, the Indian textile industry made rapid In 2000, the National Textile Policy was keting suppor [13]. progress, as evidenced by the fact that by announced and adopted, the main pur- the end of the century, 178 cotton facto- pose of which was to provide materials of Additionally, the Clothing Manufactur- ries had been created. Unfortunately, dur- acceptable quality at reasonable prices, ers Association of India (CMAI) signed ing the 1900s, many of these plants were which would contribute to the increase a memorandum in consultation with the closed both in Mumbai and Ahmedabad in the competitiveness of Indian products Chinese Chamber of Commerce regard- due to the famine that hit India [7]. on the world market [7]. ing the import and export of textiles in order to explore potential areas of coop- The Second World War and the Swadeshi The textile industry occupies an impor- eration in the growth of clothing exports movement were a great stimulus for the tant place in the Indian economy and from India. The Indian government has development of the cotton textile indus- contributes significantly to the creation also started the promotion of the “In- try1). It was during the war that imports of budget revenues from exports. It is dia Handloom” initiative, and thus the of fabrics from Japan were completely unique because it is an independent in- promotion of high quality handmade stopped, which undoubtedly influenced dustry – it has the basic requirement of products, on social media such as Face- the growth of this industry. The number raw material, manufacturing everything book, Twitter and Instagram, in order to of plants increased from 178 to 249 in right up to the final product. It has enor- establish contact with clients, especially 1901. Twenty years later, this number was mous potential to create new jobs not young people.

12 FIBRES & TEXTILES in Eastern Europe 2019, Vol. 27, 5(137) 120 15 International arrangements 106 120 15 10 for trade in textiles 100106 9 9 10 5 and its liberalisation 100 80 9 9 65 1 5 Until recently, in the years 1974-1994, 80 0 0 60 65-3 world trade in textiles was based on prin- 1 0 0 -6 -5 -6 -5 ciples that were rather contrary to the 60 -3 40 -8 -5 spirit of liberalisation. It was regulated by -6 -5 -6 -10 40 16 -8 20 13 -10 bilateral agreements between importers 11 10 9 9 8 7 -15 16 and exporters, or by the individual actions 20 13 11 -18 0 10 9 9 8 7 -15 -20 of states. Restrictions mainly concerned -18 the setting of quantitative quotas for tex- 0 -20 tile imports from individual countries, India China where the main determinant for these Turkey Vietnam activities was the Multi-fibre Arrange- Pakistan 2) ment agreement, existing since 1974 . United States Chinese Taipei The first breakthrough was the signing of Korea Republic the Agreement on Textiles and Clothing Hong Kong China European Union (28) Exports, US$ billion Annual percentage change, % (ATC) [20] within the framework of the Exports, US$ billion Annual percentage change, % WTO in 1994, where all WTO member Figure 5. Ten main textile exporters in 2016 (US $ and annual percentage change). Source: [17]. states undertook to reduce existing bar- riers to trade in textiles. The aim of this ten-year program was to gradually reduce Currently, the World Trade Organization In the case of China, the decision to lib- trade restrictions and, as a result, to fully (WTO), which is a continuation of the eralise trade in textiles turned out to be impose global rules on global trade and General Agreement on Tariffs and Trade a so-called “bullseye”, allowing to in- the total liberalisation of trade in textiles. (GATT), comprises 164 member states crease the volume of exports from year All was to be carried out in four stages, (including China and India) that manage to year. A cheap but educated workforce under which the previously determined the global system of trade rules, acts as and the development of technology un- percentage of products was to be subject a forum for negotiating trade agreements, doubtedly effects a reduction in produc- to the GATT/WTO rules. This meant that settles disputes trade between its mem- tion costs and, consequently, an increase previous restrictions in the form of quo- bers, and supports the needs of develop- in exports to global markets. In a sense, tas had to be abolished. Importantly, each ing countries. China has earned the nickname of “world state could independently decide on the quantity of products that would be cov- factory” in the textile sector. ered by the lifting of restrictions in a giv- Conclusions en liberalisation phase. The only caveat On the other hand, in the case of India, was that each stage should contain prod- The textile industry is probably one of the close relationship of the textile in- ucts from each of the four groups: the most important branches of the global dustry with agriculture and ancient cul- economy. In 2016, global textile exports ture and traditions makes this sector one n yarn reached the value of USD 660 billion of a kind compared to other countries. n fabrics, [19]. This industry plays a significant Thanks to this, the Indian textile industry n clothing, role in industrialised countries, but it is has the ability to produce a wide range n other textile products. of the greatest importance for the econ- of products suitable for various market omies of developing countries. Both pro- segments, both in India and around the With the expiration of the agreement ducers with the main advantage of cheap world. As a country with high develop- 3) in January 2005, trade in textiles was labor – this can be observed in countries ment potential , India has a chance to completely liberalised. In addition, it such as India, China and Bangladesh, and become the third largest economy in the is worth mentioning possible measures those who base their work on developed world, but to achieve this, the govern- to protect the market against excessive technology and design are present in this ment has to deal with many challenges, imports. According to the WTO rules, market. Thanks to the liberalisation of including problems of poverty and illit- it is possible for the state to initiate an- trade in textiles, developing countries eracy4), through bureaucracy, corruption, ti-dumping, anti-subsidy and safeguard have easier access to the markets of de- high income taxes on companies over- proceedings [6]. The first two measures veloped countries, which makes it easier seas, to deficiences in the economic in- are connected with proving unfair be- for them to participate in world trade. In frastructure. haviour of the country which exports, turn, developed countries have received for example, selling the product below new opportunities to access service mar- The future of these countries in the glob- its production costs. In turn, protective kets. Of course, as happens when intro- al economy undoubtedly depends largely measures (applied much less frequently ducing new solutions, many side effects on their specialisation in specific prod- than anti-dumping measures) are intend- had not been foreseen, which caused that ucts and the choice of production sys- ed to prove that the increase in imports not for all members was world trade lib- tems. Among the developing countries, it has deteriorated the functioning of do- eralisation a beneficial move. Current in- is China and India that are the most im- mestic producers and is a threat to them, formation on the main textile exporters is portant employers in the textile industry. because it may cause their total collapse. provided in the figure below Figure( 5). How their economy will develop, within

FIBRES & TEXTILES in Eastern Europe 2019, Vol. 27, 5(137) 13 which the textile and clothing industry, will probably show in the next few years.

Editorial notes: 1) Part of the Indian independence move- ment aimed at removing the British Empire from power and economic improvement in India, applying the principles of “swadeshi” (self-sufficiency). The Swadeshi movement strategies included, among others, boycot- ting British products and reviving domestic production. Institute of Biopolymers 2) An international trade agreement on texti- les and clothing that was active in 1974- -2004. Under the agreement, developed co- and untries could impose quantitative restrictions on imports of textiles and clothing from de- Chemical Fibres veloping countries. 3) The second largest consumer market in the world (just after China), created by about 1.3 billion inhabitants, generates increasing internal demand with each passing year, FIBRES & TEXTILES along with a dynamic increase in the affluen- ce of the middle class. 4) Three in ten Indians live on less than in Eastern Europe $ 1 a day. reaches all corners References 1. A brief Report on textile industry in India, of the world! ASA& Associates LLP, July 2015. www. cci.in 2. Belemkar S, Ramachandran M. Recent It pays Trends in Indian Textile Industry- Explor- ing Novel Natural Dye Products and Re- sources. International Journal on Textile to advertise your products Engineering and Processes 2015; 1, 3. 3. Divatia PJ. Indian Industries in the 21st Century p46, Deep & Deep Publications and services in our magazine! Pvt Ltd, New Delhi, 2003. 4. Marszał T. Przestrzenne aspekty rozwo- We’ll gladly ju przemysłu włókienniczego na świecie do połowy XX w. Acta Universitatis Lo- dziensis. Folia Historica 24, Łódź 1986. assist you in placing 5. Nordas HK. The Global Textile and Clothing Industry post the Agreement on Textiles and Clothing. World Trade Or- your ads. ganization, Geneva, Switzerland, 2004. 6. Raulin A. Instrumenty ochrony rynku, POLSKA IZBA ODZIEŻOWO-TEK- STYLNA. FIBRES & TEXTILES 7. Ruddar Datt, Sundharam KPM. Indian Economy p 658, S.Chand & Company in Eastern Europe Ltd, New Delhi, 2006. ul. Skłodowskiej-Curie 19/27 8. www.bizvibe.com 9. www.bossafx.pl 90-570 Łódź, Poland 10. www.chiny24.com Tel.: (48-42) 638-03-00, 637-65-10 11. www.encyklopedia.pwn.pl 12. www.ibef.org Fax: (48-42) 637-65-01 13. www.newdelhi.msz.gov.pl 14. www.pekin.msz.gov.pl e-mail: 15. www.psz.pl [email protected] [email protected] 16. www.shenglufashion.com 17. www.trade.ec.europa.eu Tel.: (48-42) 638-03-14, 638-03-63 18. www.wits.worldbank.org 19. www.wto.org Internet: http://www.fibtex.lodz.pl

Received 12.07.2018 Reviewed 18.03.2019

14 FIBRES & TEXTILES in Eastern Europe 2019, Vol. 27, 5(137)