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.
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