Increased US tarifs for Chinese imports could increase Indian textile exports

By

Isabelle Crossley

Published
May 23, 2019

The US government’s decision to increase import tax for a range of Chinese products entering the country is expected to lead to a rise in Indian textile exports, according to the Synthetic and Rayon Export Promotion Council.

The ongoing trade conflict between the US and China has led to optimism in India’s man-made fabric sector with businesses hoping to capitalise on the situation and increase their exports. The SRTEPC told the Times of India that it expects Indian MMF exports could rise by 25 percent in the current 2019 to 2020 financial year due in part to this political situation. 

“There is an ample opportunity for the Indian textile companies to grow and increase the share of textile exports to the US in the next year,” the SRTEPC chairman Narain Agarwal told the Times of India.

The US increased import duties on Chinese goods on May 10 including on textiles. “India is the largest exporter of MMF textiles to US,” explained Agarwal. “In comparison to China, the imports of textile products from India stood at $1.71 billion in 2018. In 2018, it is expected to cross $2.2 billion.”

However, although the MMF sector expects exports to rise, the US-China trade dispute could cause China to offload cheap textiles that it can no longer sell in the US in India. Agarwal opined that the government will have to increase anti-dumping duties to protect Indian textile manufacturers from an onslaught of cheaper Chinese textiles