Imports flood Indian textile market despite MIP measures

India's textile industry is facing a challenge from growing import of synthetic knitted fabrics. The government implemented a minimum import price (MIP) on specific fabrics in March, but imports seem to be cleverly diverted to avoid the restriction

Initially, the MIP curbed imports under the targeted codes. However, imports under non-MIP codes skyrocketed, suggesting potential code manipulation. Data shows a significant rise in import volume and value under non-MIP codes, while MIP-covered fabrics saw a decrease.

Industry experts say MIP needs to encompass the entire Chapter 60 of HSN codes to effectively control the import surge. The total import volume, including both MIP and non-MIP fabrics, continues to rise, raising concerns about an "import flood."