According to a report released by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) on Post ATC Competitiveness & Protectionism, China has emerged as the leading source of India’s textiles imports in the last five years as its textiles exports to India rose by 597.26% from $ 78.71 million in 2000-01 to $548.81 million in 2004-05. The study further highlights that out of India’s total global textiles imports, which stood at $597.74 million in 2000-01, the Chinese share was $78.71 million. The same however, increased to $ 548.81 million in 2004-05 against India’s total global textiles imports of $1502.50 million. This works out to be an increase of 597.26% in value terms.

In percentage terms, however, India’s textile imports from China in the year 2000-01 was 13.17% against its total global textile imports which almost tripled to 36.53%  in 2004-05 against India’s total global textile imports.

ASSOCHAM president Mr. Anil K. Agarwal stated that Chinese textiles exports to India rose because their prices internationally witnessed a downtrend in the period, which ushered cut throat competition among all leading economies of textile products and China happened to survive it so well because of its higher production of textile products with lower prices.