China’s Textile Item Banned In America, Opportunity For India

China’s textile item banned in America, the opportunity for Indian exporters.

Indian exports may benefit from a ban in the US on textile and apparel products made from China’s Xinjiang cotton.

Textile exporters have also started preparing for it. But they will have to face tough competition from Vietnam and Bangladesh.

However, exporters can benefit from the recent re-introduction of the Rebate of State and Central Tax and Levy (ROSCTL) scheme for garment exports.

Xinjiang accounts for 80 percent of China’s cotton production. Globally also Xinjiang is the largest area of ​​cotton production, which accounts for 20 percent of the world’s total production.

Due to the practice of forced labor in factories here, America has banned all products made from cotton made in this area of ​​​​China.

According to exporters, China accounts for about 30 percent of the US textile and apparel market. The US annually imports textiles and apparel worth about $ 110 billion, or about eight lakh crore rupees.

In such a situation, if India can bring even a five percent stake in China, then exports from here can increase by up to two billion dollars.

Sanjay Jain, former president of the Confederation of Indian Textile Industries (Citi), says, “India will certainly benefit from the ban in the US on all products made from Xinjiang cotton, and its effects are already visible.

Orders are increasing with Indian apparel exporters from the US. Many big US garment brands are also approaching Indian exporters.

Garment exporter and Apparel Export Promotion Council’s Northern Chairman Lalit Thukral said China is importing cotton and yarn in huge quantities from India these days and making apparel.

China can supply it to America by writing ‘Made from Indian Cotton’.

Thukral said that due to the huge increase in the export of cotton and yarn in the last few months, the cost of manufacturing garments has increased.

From January to May this year, exports of cotton, yarn, fabric, and made-ups have increased by 69 percent over the same period last year.

While Indian garment exports have grown by 39 percent in the same period. From October last year to May this year, the export of raw cotton has increased by 55 percent.

Although experts are also agreeing that China’s share in US textile imports is decreasing for the last two to three years.

India has not yet benefited from it because Indian products are costlier than Bangladesh and Vietnam’s products.

In 2019, the global export market for textiles and apparel was $818 billion, with China accounting for the highest 32 percent. India’s textile and apparel exports were only $ 35.50 billion in the year 2019.