Textile Industry leaders raise alarm on under-billed Chinese cloth influx: A Call To Action

Tarun Jain Bawa, Chairman of the Bahadurke Textile and Knitwear Association and Federation of Textile Manufacturing Association of Ludhiana has raised concerns about the influx of under-billed Chinese cloth in the state. He has pointed out that filament polyester cloth, subject to a 25 percent import duty, is being wrongly imported as cotton fabric in the state with a 5 percent duty from China, resulting in a direct tax evasion of 20 percent.

The textile, dyeing and yarn industrialists, under the banner of Swadesh Vyopar Association recently met with six BJP MPs in Delhi to discuss the issue of the under-billed Chinese cloth flooding the Indian market, causing huge losses to the industry.

The practice of under-billing Chinese cloth is causing the government to incur losses of thousands of crores every year, and about 800 tonnes of under-billed fabric is reaching India every day. The government is incurring losses to the tune of Rs. 8000 crore per year due to the tax evasion caused by under-billing.

The issue is denting business in markets across the country, including Tripura, Ahmedabad, Surat, Chennai and Ludhiana.