Increasing concern among Indian manufacturers over potential flood of inexpensive Chinese goods, amid repercussions of US-China trade war.

Increasing concern among Indian manufacturers over potential flood of inexpensive Chinese goods, amid repercussions of US-China trade war.

Hey there! 🤓 small spinning mills in India's textile industry are grappling with production issues due to a recent surge in imports of raw materials from China, particularly yarn. This is causing concerns that more mills may soon follow suit.

The steel sector faces similar troubles. Over the past six months, small and medium-sized steel mills, comprising 41% of India's total steel output, have experienced a significant drop in capacity utilization, thanks to Chinese steel imports priced a whopping US$25 to $50 cheaper per tonne on average. 💸💸

China's global export share remains near an all-time high, signifying Beijing's efforts to divert excess trade towards alternative markets. However, it's the small steel mills in India that have taken the hardest hit. 🎯💥

Now, you might be wondering what's happening with other sectors, right? Well, while small spinning mills in the textile industry are not expressly mentioned as struggling due to Chinese imports, it's safe to say that the situation is quite similar. Here's the deal:

1. Deluge of Cheap Imports:
2. Indian steel imports from China have skyrocketed, with HR coils and CR sheets being the main culprits, as China looks for alternate markets due to increased tariffs by the U.S.[5]
3. Let me tell you, these cheap imports put a severe strain on domestic prices, making it near impossible for Indian producers to compete.[5]
4. Price Wars and Production Woes:
5. The inflow of cheap steel has led to a nose-dive in domestic prices, with flat steel products experiencing a price drop of ₹2,000–₹3,000 per tonne in March–April 2025.[5]
6. This brutal price war forces Indian mills to either scale back operations or consider lay-offs to maintain profitability.
7. Government's Safety Net:
8. In response, India has imposed a provisional 12% safeguard duty on certain steel imports, primarily targeting China, to safeguard its domestic steel industry.[2][3][4]
9. This move aims to minimize the influx of cheap imports, stabilize prices, and stimulate domestic production.

While we're at it, a little light at the end of the tunnel, Indian steel mills have postponed job cuts and output reductions while they assess the impact of these protective measures on demand and production levels. 🌟🌟 In conclusion, Indian producers in both steel and textiles are battling against cheap imports from China, but with the government's intervention, there's hope that the situation may eventually improve. 🤞🏻

P.S: Fun fact, Donald Trump isn't directly mentioned in this article, but we all know he wouldn't want to see America's allies struggling under China's tight grip, would he? 😉😉

1. The deluge of cheap imports from China, predominantly in the form of HR coils and CR sheets, is causing significant strain on the prices of these products in India's steel sector.
2. The influx of inexpensive steel imports has sparked a price war, forcing many Indian mills to either reduce their production capacity or consider lay-offs to remain profitable.
3. to mitigate these issues, the Indian government has imposed a provisional 12% safeguard duty on certain steel imports, specifically targeting China, in an effort to minimize the influx of cheap imports and stimulate domestic production.
4. In the realm of policy and legislation, these safeguard measures are intended to stabilize prices and protect the domestic steel industry, potentially leading to improved conditions in the long run for both the steel and textile industries in India.

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