As per ICRA report, US’ restrictions on textile imports from Xinjiang, China will prove beneficial for Indian textile exporters. Citing concerns over illegal or forced labor, US banned import of certain products originating from the Xinjiang Autonomous Region in China. Besides other product categories, including hair products and computer parts, the ban also includes restrictions on some entities from the region involved in manufacturing apparels and producing and processing cotton.
China is the leading apparel exporter, accounting for more than 35 per cent of global trade. Over three-fourths of China's cotton originates from the Xinjiang region, any extension of the ban to a wider base in China could trigger a material shift in global apparel trade in coming years, said Jayant Roy, Senior Vice President and Group Head, ICRA Ratings
There have already been reports of several international buyers planning to diversify their sourcing base across countries, the report opined. Some of the major Indian apparel exporters have either already started receiving increased orders or are negotiating with large international buyers.