Mon, 05 May 2025

Mon, 05 May 2025 India worried about Chinese 'dumping' as trade tensions with Trump escalate

Experts warn that a flood of cheap Chinese goods could hurt the competitiveness of Indian exports.
Due to increased imports from China, Indian textile manufacturers are facing difficulties in selling their products, leading to slowed production and storage of yarn at mills in southern India's Tamil Nadu state. The Chinese imports have become cheaper by 15 rupees per kilogram, flooding Indian ports with cheap viscose yarn. As a result, orders from local factories have dropped nearly 40% in the last month. Thirunavkarsu, a 64-year-old mill owner, fears that his products won't be able to compete with cheaper Chinese imports. The issue has led to concerns about market dumping by China, which is now looking for alternative markets due to trade tensions with the US. Despite reassurances from Beijing, India's textile manufacturers are concerned about the impact of cheap Chinese imports on their businesses. India's dependence on China for intermediate goods and raw materials is also a concern, with the country's trade deficit with China reaching $100 billion in 2024. The government has set up a committee to track the influx of cheap Chinese goods and impose safeguards, but experts say that India needs to address its competitiveness gap to reduce its reliance on China. The issue is not just limited to textiles, as other sectors such as electronics have also seen an increase in imports from China, pushing up India's trade deficit. Experts warn that if left unchecked, this could lead to a sharp slowdown in manufacturing growth and undermine India's efforts to become a major industrial hub.
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