The Cotton Ban In India Reflects The Bottleneck Of Manufacturing In Its Economic Development Structure.

India commerce and Industry Minister Anand Sharma said 11, the government has decided to cancel the 5 month cotton export ban, and will be officially announced on 12.

Cotton, which is not a very sensitive textile material, has recently become a star, frequently appearing in newspapers in China and India. It originated in the influence and controversy caused by the India government's ban on cotton exports.

In principle, exporting cotton is also an opportunity for the India government to balance its long-term trade deficit with China.

However, the actual situation is much more complicated.

Under the pressure of the textile industry in India, in March 5th, the government of India suddenly issued a ban on cotton exports, causing the international cotton market to stir up waves.

Behind the India cotton ban, it reflects the bottleneck of manufacturing in India's economic development structure.

Textile industry behind export ban

According to print media, the pressure behind the cotton export ban comes from the India textile industry alliance.

The alliance claims that the ban on the India government has been delayed, and that India's cotton exports are far higher than the government's plan.

If cotton is exported in large quantities, it will affect the supply of cotton next season, raise domestic cotton prices in India and cause cost pressures to textile mills.

The textile industry is a pillar industry in India. Last year, it contributed 4% of the GDP, which provided more than 35 million employment opportunities for India. Its employment status in India was only inferior to that in agriculture.

At present, India's textile industry is also catching up with China in the global market.

It is estimated that India's textile exports will reach US $32 billion 350 million in the 2011-2012 fiscal year, an increase of 20.7% over the previous fiscal year.

At present, India textile ranks third in the export market of the European Union and the United States.

However,

Export ban, the effect is obvious, a large number of cotton hoarding India port, India cotton prices drop.

According to the agency's report, 40% farmers in India have an oversupply of cotton. Many farmers can't find warehouses to store cotton, and directly put cotton into the house.

The ban caused cabinet controversy.

On the day of the ban, the Minister of agriculture of India said in an interview with the media that he had not received any prior notice and said that the ban would cause serious damage to farmers and openly oppose the ban.

The two ministers of cotton production, gubjarat and Ma hastla, rushed to New Delhi to meet Prime Minister Singer and raise objections after the ban was issued.

The ban will have a serious impact on Farmers' income and will affect the upcoming general election.

Under various opposition pressures, Singer issued an urgent order on the second day of the ban, requesting the Minister of finance to take the lead to reassess the ban in March 9th.

On March 11th, Anand Sharma, Minister of Commerce and industry of India, said the government had decided to cancel the ban on cotton exports issued on the 5 th of this month and will be officially announced on 12.

What is the competitive advantage of India?

As a developing country with large population, India is most worried about competition from Chinese goods, even Indians.

India Analysis Agency claims that 5 years later, 75% of the manufacturing products in India will come from China, and the manufacturing disadvantage will be a headache for the government.

However, judging from the list of recent Forbes rich list, India's rich are far ahead of China in the two emerging industries of software and bio pharmaceuticals.

In the rich list of 2011, excluding the comprehensive industry, China has no rich list in the software industry, and there are 5 in India.

The total sales volume of Infosys, the second largest software company in India, is 3 times that of China's software outsourcing, reaching 6 billion US dollars.

In terms of biopharmaceutical industry, China has 8 listed companies, 9 billion 500 million US dollars, and 8 India listed companies, with net assets of US $22 billion.

Many biopharmaceutical companies in India have crowded into the global upstream. The total export volume of biopharmaceutical industry accounts for 35% of India's exports.

Although the overall pharmaceutical scale is smaller than that of China, it is in the leading position in the global market and technology content.

Kiran, an independent analyst in India, recently wrote that the revenue of India IT-BOP (IT business process outsourcing) in this fiscal year will be 100 billion yuan from 100 million US dollars 20 years ago, and India IT industry will enter a new milestone.

However, compared with the textile industry that provides 35 million employment forces, only 2 million 800 thousand of the IT industry in India has absorbed direct employees.

At present, the annual labor force in India is more than 20 million. How to satisfy these hungry young people is obviously unable to rely on high-tech industries that can not create large numbers of jobs, but also rely on underpowered "India manufacturing".