Chinese textile influx : The Tribune India

Join Whatsapp Channel

Chinese textile influx

INDIA has doubled import duties on 328 textile items making costlier imported garments such as fabrics, carpets and technical textiles.

Chinese textile influx


INDIA has doubled import duties on 328 textile items making costlier imported garments such as fabrics, carpets and technical textiles. Apparently, this policy decision aims to shield Indian manufactures from the fallout of a bitter Sino-US trade war. Indian textile is expected to suffer from collateral damage. India took a quiet, unannounced step last month to protect its key industry when it raised import duty on more than 50 textile products. The recent move is, however, much bigger in terms of the number of products. The textile sector is India’s second largest job provider after agriculture. It accounts for almost 15 per cent of the country’s total exports, making it the world’s second largest textile exporter after China. It has a genuine apprehension: blocked by the Americans, China may swamp the Indian market with cheap goods that would destroy the domestic industry.   

Tariff protection is, however, a half measure. The new tigers — Bangladesh, Sri Lanka and Vietnam — are giving the Indian textile industry a run for its money. Most of these countries have extremely favourable trade treaties with India, including Free Trade Agreements (FTAs) and benefits from other pacts. China had been indirectly exporting its products without paying duties through these countries after a little value addition. The tariff wall will force it to use this loophole to gain market access. The government needs to plug this gap through the principle of ‘rules of origin’. 

Besides being proactive on the tariff front, the government must take steps necessary to make the Indian textile sector competitive. Like China, India has all required resources — technology, raw materials, skilled labourers. What it lacks is the political will to correct policy anomalies. Skewed labour laws do not favour the creation of massive textile manufacturing units that could compete with the Chinese facilities in the economy of scale. The government must not rest easy after erecting tariff walls. The textile sector needs rejuvenation to make it the thriving export engine it once was. 

Top News

Cash-strapped Congress gets fresh IT notice of Rs 1,700 crore, say party insiders

Cash-strapped Congress gets fresh I-T notice of Rs 1,800 crore

Ajay Maken addresses a press conference

Special court convicts 7 people in BSP MLA Raju Pal murder case

Special court convicts 7 people in BSP MLA Raju Pal murder case

The proceedings against Atiq Ahmad, his brother and prime ac...

Arvind Kejriwal's wife releases WhatsApp number for people to send messages for jailed AAP leader

Arvind Kejriwal's wife launches WhatsApp campaign to garner support for AAP leader

In a digital media briefing, Sunita says her husband has cha...

Alka Rai, widow BJP MLA killed by Mukhtar Ansari, says 'justice has been served', visits Ram Mandir

Alka Rai, widow BJP MLA killed by Mukhtar Ansari, says 'justice has been served', visits Ram Mandir

Alka Rai is the wife of MLA Krishanand Rai, who was shot dea...


Cities

View All