Indian textile exporters to gain from US-China trade conflict


Cotton textiles, floor coverings, man-made filaments could benefit most, says industry

Textile exporters in India are optimistic that the additional tariff of 25 per cent imposed by the US on China as part of the on-going trade conflict between the two has opened up opportunities to increase their share in the American market.

As per a recent analysis done by the Confederation of Indian Textile Industry (CITI), the list of notified $ 200 billion imports from China on which additional tariff imposed by the US places Indian textile exporters at an advantageous position.

Of the $200 billion of imports from China , textile items comprise just $ 3.9 billion of the value, but it still provides enough scope to exporters in India.

“The US’ total import of these textile products from India was approximately $ 1.71 billion in 2018, which is 43 per cent of its imports from China. Out of the total textile products, cotton textiles account for the largest number of tariff-lines. In terms of value, the most imported products belong to floor coverings, non-woven cordage and man-made filaments,” said Sanjay Jain, Chairman, CITI.

The segments that have increased opportunities for Indian exporters include silk, wool, cotton, other vegetable fibres, man-made filaments, man-made stable fibres, floor coverings, non-woven cordage, special woven fabrics, knitted fabrics and coated and industrial fabrics.

However, the additional tariff hike does not include garments and made-ups which won’t have an advantage like the other segments, Jain added.



Source: The Hindu Business Line, India
Saturday, 18 May 2019

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