NITMA appeals to PM Modi over rising under-invoiced imports of synthetic knitted fabrics

The Northern India Textile Mills Association (NITMA) has raised serious concerns about the growing issue of under-invoiced imports of synthetic knitted fabrics, which are harming the domestic textile industry. In an appeal to Prime Minister Narendra Modi, NITMA President Sidharth Khanna urged intervention to halt these imports, highlighting a disturbing trend of misdeclaration of HS codes at Indian ports. Importers are circumventing regulations by importing fabrics at prices as low as $1 per kg, while the true cost is around $4–6 per kg globally.

Despite the government’s imposition of a Minimum Import Price (MIP) of $3.50 per kg on certain synthetic fabrics until March 2025, imports have continued to rise, shifting to non-MIP HS codes.

Data shows significant increases in imports: 89 million kg in Q1 2024, 81 million kg in Q2, and 130 million kg in Q3. This has resulted in severe losses to the industry, with over Rs 10,000 crore in tax evasion, leading to closures of dyeing, knitting, and spinning units. Khanna has urged the PM to initiate an investigation into these practices and protect the integrity of India’s textile sector.