India’s trade body has urged the Prime Minister to impose import restrictions on knitwear from China. At present, the Indian textile industry is facing the dual pressure of slowing export demand and a large influx of imported fabrics and garments. According to the All India Knitting Association, import supply is also eating up domestic demand.
In a letter to the Prime Minister’s Office, the association explained that synthetic knitted fabrics imported under HSN code 60063200 accounted for 74% of the total synthetic knitted fabrics during April-August 2023 at an average price of $1.41 per kilogram. In contrast, the cost of domestic production currently hovers at $4 per kilogram.
In response, the association said that India’s domestic industry is losing market share due to unfair competition. More important, cheap imports are eating up domestic demand. Therefore, the agency asked the government to take immediate steps to restrict the import of synthetic knitted fabrics from China below cost price.
Not only is it recommended that the government impose anti-dumping duties immediately, but it is also proposed to impose quality control orders on finished products rather than raw materials such as fibers and yarns.