India’s manufacturers fear influx of cheap Chinese imports amid US-China trade war fallout
From yarn to steel, India’s domestic industries say they’re being priced out as Chinese firms redirect exports away from the United States
Earlier this month, the South India Spinners Association reported that at least 50 small spinning mills in southern textile hubs like Pallipalayam, Karur, and Tirupur were facing production slowdowns. Many fear further cutbacks are now on the horizon as raw material imports from China, such as yarn, undercut prices in the domestic market.
The steel sector faces similar challenges. In December, executives from small and medium-sized steel mills, which account for 41 per cent of India’s total steel output, revealed that capacity utilisation had plummeted by nearly a third over the previous six months.
These mills, unable to match Chinese steel priced US$25 to $50 cheaper per tonne on average, have been forced to scale back operations and consider lay-offs, Reuters reported.
However, China’s global export share remained near an all-time high of 15 per cent, the report found, reflecting Beijing’s efforts to redirect surplus trade towards alternative markets.