Gujarat: Indian Textile Industry Faces Stiff Competition From Rising Chinese Fabric Exports
The largest man-made fabric (MMF) hub in the country is grappling with increasing competition from China, as fabric exports from the Chinese textile industry to India surged by 8.79% in the first quarter of 2024.
![Gujarat: Indian Textile Industry Faces Stiff Competition From Rising Chinese Fabric Exports | Representative Photo](https://media.assettype.com/freepressjournal/2021-10/25c0f5a9-9ead-4019-9cc9-d12c2af277d1/textile.jpeg)
Gujarat: Indian Textile Industry Faces Stiff Competition From Rising Chinese Fabric Exports | Representative Photo
Surat: The largest man-made fabric (MMF) hub in the country is grappling with increasing competition from China, as fabric exports from the Chinese textile industry to India surged by 8.79% in the first quarter of 2024. Industry leaders attribute this rise to the Quality Control Orders (QCO) imposed on raw materials, including yarns, which have inadvertently favored Chinese exporters.
Surge in Chinese Textile Exports
In the first quarter of this year, China exported textiles worth $684 million to India, with fabric exports constituting 64.75% of the total, amounting to $442.863 million. This marks an 8.79% increase compared to the $407.090 million exported in the same period last year. Yarn exports from China to India, valued at $198.331 million, represented 29% of the total textile exports, while fibre shipments stood at $42.805 million, making up 6.26% of the total.
Impact of Quality Control Orders
Ashish Gujarat, former president of the Southern Gujarat Chamber of Commerce and Industry (SGCCI), pointed to the QCO on raw materials in India as a key factor driving the surge in fabric imports from China. "The QCO on raw material in India has resulted in the increase of fabric export from China to India. We are strongly demanding that the Central Government impose QCO on fabric as well to prevent China from destroying the indigenous textile sector in India," said Gujarat.
Industry experts believe that the QCOs have given Chinese manufacturers an edge, allowing them to export fabric to India at competitive prices, thereby undermining the domestic textile industry.
Decline in Yarn and Fibre Imports
While fabric imports have risen, yarn and fibre imports from China have seen significant declines. Yarn shipments to India dropped by 43.23% in the first quarter of 2024, falling from $349.329 million in the same period last year to $198.331 million. Similarly, fibre exports decreased by 23.63%, down from $56.052 million in January-March 2023 to $42.805 million this year.
Comparative Export Data
In 2023, China's total textile exports to India were valued at $3,594.384 million, a slight decrease from $3,761.854 million in 2022. Fabric exports accounted for $1,973.938 million, representing 54.92% of the total exports. Yarn shipments were valued at $1,409.318 million (39.21%), and fibre exports stood at $211.128 million (5.87%).
Despite the overall decrease, fabric exports to India saw a notable 6.21% decline compared to the $2,104.681 million exported in 2022. This trend underscores the shifting dynamics within the textile trade between the two countries.
Challenges for Indian Textile Industry
The rise in Chinese fabric exports highlights a broader challenge for India's textile sector, which is struggling to compete on a global scale. Indian fabric and apparel exports lag behind smaller countries like Cambodia and Vietnam, further emphasizing the need for strategic interventions.
Industry leaders are urging the Central Government to extend QCOs to finished fabrics to safeguard the domestic textile industry. They argue that such measures are essential to prevent market disruption caused by low-cost Chinese imports and to support the growth of indigenous manufacturers.
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