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China Dumps Cheap Textiles, Indian Textile Industry in Distress

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Published on : Sep 15, 2015

 Leading textile players in India are seeking protection from the textile industry due to losses incurred by cheap dumping from China. Indian textile players are alleging 60% of the dumping to be from China. The unofficial estimate of the trade size is sized to be about 20%-40% of the US$105 bn domestic textile industry. Kaytee Corporation owned by Udani is one of the largest companies that exports to American retail chains. 

As commented by Udani, the domestic textile industry in India is being hurt by apparel and fabric dumping from China. The owner of Kaytee Corporation further stated that the government should have taken measures in order to properly regulate the products and inspect products that are coming to India from the several countries. He further added that as soon as China realizes that it cannot export to India as per the government regulations it will re-direct shipments to countries such as Hong Kong, Bangladesh, Cambodia, and Vietnam. From these countries the shipment will be redirected to India to avoid government regulations. Other large textile manufacturers in India such as Century, Birla Cellulose, and many others have been affected by the increased Chinese dumping. 

As commented by Rajeev Gupta, the Chief Managing Officer of Birla Cellulose, which is the largest manufacturer of viscose staple fiber in the world, until the problem of Indonesian and Chinese dumping is resolved, all policies by the government to help small and local manufactures will be of no use. 

The cheap dumping of products is impacting the entire the value chain in the textile industry from fiber to yarn to finished garment. This has also adversely impacted the viscose staple fiber industry which in turn has affected the domestic consumption from 8 % to 10 % due to such imports.