India exported 283.18 million kilograms of Cotton yarn worth $916 million in the April–July period of the current financial, down 9.79% year-on-year, according to latest data compiled by the apex industry body Cotton Textiles Export Promotion Council (Texprocil).
The decline is largely attributed to slow pick up from China and Bangladesh, the two large destinations comprising around 50 per cent of overall shipments from India.
Exports to China have declined by a staggering 48.58 per cent during the April–July period in 2017.
“Vietnam is gaining market share at the cost of India mainly due to zero tariff on imports to China. Whereas imports from India attract a tariff of 3.5 to 5 per cent, Texprocil noted.
Apart from that, Chinese textiles mills have invested immensely in textile and apparel sector in Vietnam. So, they are buying back yarn to China from their own manufacturing units, thereby, cutting down imports from other countries including India, Texprocil said.
India's Cotton yarn industry has also suffered a hit due to GST levy of 5% that came to force after the goods and services tax (GST) was rolled out on July 1. Since Cotton yarn manufacturers never paid any taxes in the past, compliance under the GST regime brought the entire business to a standstill, even before the July 1 deadline.
The decline is largely attributed to slow pick up from China and Bangladesh, the two large destinations comprising around 50 per cent of overall shipments from India.
Exports to China have declined by a staggering 48.58 per cent during the April–July period in 2017.
“Vietnam is gaining market share at the cost of India mainly due to zero tariff on imports to China. Whereas imports from India attract a tariff of 3.5 to 5 per cent, Texprocil noted.
Apart from that, Chinese textiles mills have invested immensely in textile and apparel sector in Vietnam. So, they are buying back yarn to China from their own manufacturing units, thereby, cutting down imports from other countries including India, Texprocil said.
India's Cotton yarn industry has also suffered a hit due to GST levy of 5% that came to force after the goods and services tax (GST) was rolled out on July 1. Since Cotton yarn manufacturers never paid any taxes in the past, compliance under the GST regime brought the entire business to a standstill, even before the July 1 deadline.
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| Cotton Yarn Exports India |
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