Surat, Jun 6 (KNN) India's largest man-made fabric (MMF) hub is facing mounting competition from Chinese textile exporters.

In the first quarter of 2024, China exported USD 442.9 million worth of fabrics to India, an 8.79 per cent increase from the same period last year.

This surge is attributed to Quality Control Orders (QCOs) imposed by India on raw material imports like yarns.

While intended to regulate quality, the QCOs have inadvertently made Chinese fabric exports to India more cost-competitive.

"The QCOs on raw materials have allowed China to increase fabric exports to India at lower prices, undercutting our domestic textile manufacturers," said Ashish Gujarat, former president of the Southern Gujarat Chamber of Commerce and Industry.

Industry leaders are urging the government to extend QCOs to finished fabrics as well to level the playing field.

In contrast to rising fabric imports, India's yarn and fibre imports from China declined sharply in Q1 2024 versus the prior year, down 43.23 per cent and 23.63 per cent respectively.

Overall in 2023, China exported USD 3.59 billion worth of textiles to India, with fabrics making up 54.92 per cent of the total.

While fabric exports to India dipped 6.21 per cent from 2022 levels, the recent Q1 2024 spike highlights intensifying Chinese competition.

Indian textile manufacturers are struggling to compete globally against lower-cost nations.

Strategic government support through trade policies may be needed to prevent further market disruption and bolster the domestic MMF hub's competitiveness.

(KNN Bureau)