India imposes Minimum Import Price on synthetic knitted fabrics.

India has tightened import belt on synthetic knitted fabrics to level the playing field for domestic manufacturers. The government has imposed a minimum import price (MIP) of $3.50 per kilogram on specific categories of synthetic knitted fabrics. This policy applies to HS codes 60063100 (unbleached/bleached), 60063200 (dyed), 60063300 (yarn of different colors), 60063400 (printed), and 60069000 (other) under Chapter 60 of the ITC (HS) 2022.

This move aims to curb the import of low-cost synthetic knitted fabrics, often accused of being dumped at unfairly low prices. This practice can harm domestic manufacturers who struggle to compete. The MIP is expected to safeguard domestic jobs and encourage investments in the Indian textile industry.

The MIP is a temporary measure, valid until September 15, 2024, unless extended. Industry experts anticipate adjustments in pricing strategies and sourcing patterns. Importers may look for alternative fabrics or source from countries not affected by the MIP. Consumers might experience slight price increases for synthetic knitwear products.

The government's decision reflects its commitment to fostering a self-reliant domestic textile industry. While the MIP protects domestic players, it also highlights the delicate balance between promoting trade and ensuring sustainable economic growth. The long-term impact of this policy on the industry's competitiveness and export potential remains to be seen.