Chinese wage rise opportunity for Indian apparel makers, says World Bank | business | Hindustan Times
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Chinese wage rise opportunity for Indian apparel makers, says World Bank

A 1% increase in Chinese apparel prices could increase EU demand for Indian apparel exports by 1.9% and the US demand by 1.46%, a report by the World Bank says

business Updated: Apr 28, 2016 20:59 IST
Workers in a clothing factory in Huaibei, China. World Bank says that with wages rising in China, India’s apparel exports stand to gain
Workers in a clothing factory in Huaibei, China. World Bank says that with wages rising in China, India’s apparel exports stand to gain(AFP file photo)

Rising wages in China offers a huge job creation opportunity for India in the apparel manufacturing sector, says a World Bank report.

A 10% increase in prices of Chinese apparels, resulting majorly from wage rises, could create 1.2 million new jobs in Indian apparel industry, said the report, titled Stitches to Riches? Apparel Employment, Trade and Economic Development, launched here on Thursday.

Women will benefit more. A one percent increase in expected wages in the industry could raise the probability of women entering the labour force by 18.9%, the report says.

“Apparel manufacturing not only has a huge potential for creating jobs, particularly for the poor, but also has a unique ability to attract female workers” said Onno Ruhl, World Bank country director, India. “Employed women are more likely to create positive social impacts as they tend to spend their income on the health and education of children,” he said.

Textile and apparel employs more women than any other industry in India. In 2010, the report said, 35% of the workers the sector was female, while the ratio was about 15% in rest of the industries combined.

The report also says a 1% increase in Chinese apparel prices could increase EU demand for Indian apparel exports by 1.9% and the US demand by 1.46%.

The overall average monthly wages in China, the largest apparel manufacturer for the last 10 years, is to reach about $650 in 2015, more than doubling in a decade.