China floods India with garments

19 October 2022, Mumbai:

China’s apparel exports to India increased by two and a half times in August 2022 compared to March 2022.

The trend is important as it indicates that more and more Indian buyers are importing cheaper Chinese garments. The steep rise in imports of cotton garments from China is seen as the main cause of low demand in the entire textile value chain in the country.

All items in the garment category are being imported as they are cheaper than garments made in India. If garments are imported from China, nobody buys yarn or fabrics. Therefore, demand is not improving even during the festival season.

Monthly garment imports from China to India have increased consistently during the last six months. Garment exports from China grew in July 2022 over June 2022 when the US banned cotton and cotton products originating from the Xinjiang region of China.

Cotton and yarn prices declined in the Chinese market after the ban. Of Chinese apparel exports in the first half of 2022, trousers and shorts contributed 22 percent in the total supply. Jackets and blazers had an 18 percent share, accessories 15 percent, socks seven percent and dresses five percent.

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