Indian textiles not to face dumping charge

India will not face any anti-dumping charges in the textile sector in the United States and European Union, said Union Textile Minister Shakersinh Vaghela.

Indian textile exports to these countries saw an increase of over 25 per cent in the first quarter of the removal of the quota regime.

"There will be no anti dumping duty for India as we are adhering to the rules and regulations of the World Trade Organisation agreement. China should worry about exports, not us," Vaghela told Business Standard.

He also said that Indian textile exports are slated to increase further in the coming quarters. Indian textile exports to the US, the world's largest market, have recorded a quantum jump in all major categories which include knitted shirts, blouse and cotton skirts.

The exports of these items have almost doubled in three months after quota restrictions were lifted.

According to the data compiled by International Trade Administration of the US commerce department, significant export growth was recorded by a number of categories in January to March 2005, which include cheesecloth by 457 per cent, cotton gloves by 1,069 per cent, woollen baby garments by 883 per cent, woollen skirts by 406 per cent, man-made fibre suits by 4,257 per cent and underwear by 782 per cent.

"Unlike China, the quantum jump in imports from India has not alarmed the US as the China's textile quota for the US had been very large compared to India. We will leave no stone unturned to secure the leading position for the Indian textile industry in the world," said Vaghela.

Though India's export growth in certain categories appears very high due to narrow base in the quota regime, the jump in Chinese textile imports is the real cause for concern for the US, Vaghela added.

However, China's and India's textile and apparel exporters may lose most of EU's generalised system of tariff preferences (GSP) treatment, to be effective from January 1, 2006, as EU's duties will be effectively raised, in order to limit the surge in imports in the post-quota period.