India’s yarn imports from China have witnessed a significant surge in the first four months of 2023, reaching a staggering 251.533 million kg, according to recent data market insight tool TexPro. This figure accounts for a remarkable 68.86 per cent of India’s total yarn imports during the period.
The value of these yarn imports from China stood at $448.634 million, marking a substantial 17.43 per cent increase compared to the same period in the previous year. The surge in imports can be attributed to higher raw material prices in India, making imported yarn more cost-effective for the domestic market.
In comparison, the yarn imports from China were valued at $384.003 million during the January-April period in 2022, representing an 11.17 per cent decrease compared to the same period in 2021 when the imports were valued at $432.306 million.
Over the past few years, India has witnessed a steady rise in yarn imports. In 2022 alone, the country imported a staggering 503.122 million kg of yarn, with a total value of $1,359.584 million. This marked an increase from 487.956 million kg ($1,094.979 million) in 2021, 246.586 million kg ($513.958 million) in 2020, and 178.995 million kg ($524.742 million) in 2019.
The surge in imports has presented challenges to India’s domestic spinning industry, which has experienced diminished demand. However, the weaving industry has benefitted from the availability of cheaper imported yarn. The slowdown in global and domestic garment demand has further impacted the industry, adding to the challenges faced by the spinning sector.
TexPro’s data reveals that China remains the leading supplier of yarn to India, capturing a dominant 68.86 per cent share of the total imports during the first four months of 2023. Other significant suppliers include Indonesia (5.11 per cent), Nepal (4.1 per cent), Vietnam (4 per cent), and Bangladesh (3.60 per cent).
The Indian textile industry will need to carefully navigate these evolving dynamics, considering both the opportunities and challenges presented by the influx of imported yarn. As the market continues to adapt to changing conditions, stakeholders in the sector must explore strategies to bolster domestic production while remaining competitive in the global marketplace.
With the yarn imports from China dominating India’s market, industry experts and policymakers are closely monitoring the situation and evaluating measures to strengthen the domestic textile industry and enhance its self-reliance.
As the year progresses, it remains to be seen how India’s textile industry will adapt to these shifting trends and devise strategies to maintain a balance between domestic production and international imports.