Indias textile industry is facing severe challenges as a flood of low-priced Chinese knitted goods enters the market, severely impacting domestic production. The All India Knitters Association recently made an urgent appeal to Prime Minister Narendra Modi, calling for immediate government intervention to restrict imports of low-priced synthetic knitted goods from China. This article provides an in-depth analysis of the causes, current situation, and impact on Indias textile industry.

The Impact of Chinese Knitted Goods on the Indian Market

In recent years, synthetic knitted goods from China have been sold in the Indian market at prices far below domestic production costs, causing significant losses to Indias textile industry. Data from the All India Knitters Association shows that imports of synthetic fiber knitted fabrics from China have surged over the past four years, with daily imports increasing by 111%, while prices remain substantially lower than domestic production costs.

Government Revenue Losses

Due to undervalued imports, government revenue from Basic Customs Duty (BCD) and Goods and Services Tax (GST) is declining. Additionally, the undervaluation has led to losses in direct tax revenue. Association President Raj Kumar Agarwal emphasized that this situation not only threatens domestic industry but also harms government finances.

Countermeasures by Indias Textile Industry

In response to this challenge, the All India Knitters Association has recommended urgent government action. The association has called for immediate implementation of Anti-Dumping Duty (ADD) and Quality Control Orders (QCO) on finished products to protect domestic industry from unfair competition. This move aims to promote value addition through domestic manufacturing under the Prime Ministers Make in India policy.

The Future of Indias Textile Industry

Domestic industry is losing market share, and low-priced imports are eroding local demand. The association has requested the Prime Ministers Office to convene an early meeting to discuss this urgent matter. Effective government measures could help revitalize the domestic textile industry and restore market balance.