While there are ongoing demands to protect the Indian textile industry from cheap Chinese imports, the textile manufacturers and associations have warned the top authorities that the domestic industry would be extinct if dumping is not countered. The industry asserts that as much as 60 % of dumping happens from China, and unofficial estimate affirm the size of this trade to be varying between 20% and 40% of the US$ 105-billion domestic textile industry. China, facing over capacity, has for long been dumping their fabrics and ready-made garments in the Indian market through Bangladesh, Nepal, Vietnam and even Cambodia, the Chairman for Policy, Apparel Export Promotion Council Premal Udani has confirmed. Udani's firm Kaytee Corporation is one of the largest garment exporters to American retail chains. Pointing to the ongoing problem of Chinese or Chinese-origin apparel and fabric dumping in the domestic market, Udani mentioned that the government should ensure that our borders are better policed, and the customs officials do vigorous inspection of the country-of-origin of goods being shipped in and incentivise the domestic industry apart from engaging in better terms of trade with our neighbours.
The impact of increasing dumping by Chinese is also felt by the largest textile manufacturers like Birla Cellulose, Century, and other textile mills among others. "Cheap dumping by Chinese and Indonesian manufacturers has been hurting us really badly. It's not that our domestic market is not growing. Unless we do something about the problem of dumping, the very plan of pushing local manufacturing will come a cropper," CMO, Birla Cellulose Rajeev Gopal, which is the largest viscose staple fibre (VSF) producer in the world, said. The VSF industry claims that dumping of cheap products across the value chain from fibres to yarns to fabrics is hurting the domestic industry. Nearly 8-10 % of the domestic consumption of 25,000 tonne per month has been affected by such imports.