Encyclopedia of India–China Cultural Contacts v1.c5.s3.t2.5

v1.c5.s3.t2.5

From the turn of the 20th century CE, however, Indian cotton yarn exports to China began to decline mainly on account of competition from Japanese yarn which was cheaper. In 1906, India still supplied 77 per cent of Chinese yarn imports but a decade later, Japanese yarn exports had overtaken India’s exports. By 1924, the Indian share of the Chinese cotton yarn market had fallen to 24 per cent. By this time, Chinese production of manufactured cotton yarn had also begun to displace both Indian and Japanese imports. The decline in yarn exports to China almost immediately affected the textile industry in India with several mills in Bombay having to close down fully or partially. However, in the long term, it was one of the factors that led to the industry in India reorienting itself to produce cloth for the domestic market again, instead of focussing on producing yarn for export.