Quality Control Orders (QCOs) on textile raw materials such as polyester fibre and yarn, and viscose fibre, have once again come into the spotlight amid the US’ imposition of reciprocal tariffs. India risks missing an opportunity to capture diverted orders from China following the imposition of a 145 per cent reciprocal tariff, as Indian garment exporters may remain uncompetitive due to higher raw material prices. Even if the Indian government were to remove QCOs immediately, the brief 90-day window provided by the US may not allow sufficient time to benefit.
Ashish Gujarati, former president of the Southern Gujarat Chamber of Commerce & Industry (SGCCI), said, “Polyester yarn of different varieties and specifications is 15 to 35 per cent costlier in India. It makes fabric dearer which increases total cost of production of Indian garments.” He noted that Indian garment exports are unlikely to benefit from diverted orders from China. Turkiye is expected to be the biggest beneficiary in the current scenario.
India mandates quality certifications for polyester fibre and yarn, and viscose fibre, in line with the standards set by the Bureau of Indian Standards (BIS), as per QCOs issued for these raw materials. The government also plans to implement a QCO for textile machinery from August 2025.
Gujarati further stated that India has launched investigations into imports of nylon, spande x, and viscose yarn. If these imports are found to cause material injury to the domestic industry, the government may impose anti-dumping duties (ADD) on these products. He emphasised that the government must decide whether it wants to protect the domestic raw material industry or the finished goods sector. Expensive raw materials cannot ensure the competitiveness of Indian garment exports.
He highlighted that QCOs are overly arbitrary, applying to varieties of polyester and other yarns that are either not produced domestically or produced in negligible quantity and poor quality. Such yarns are used in performance-based technical textiles, and the Indian industry currently imports expensive fabrics of these types. The Indian weaving industry could produce them and add value if these yarns were allowed. Even if the government were to remove QCOs immediately, it would be nearly impossible to take advantage of the brief 90-day window offered by the US.
Gujarati added that he intends to raise this issue at the upcoming meeting of the Textile Advisory Group on man-made yarns, to be held in New Delhi. However, the government has yet to announce the date.
Sanjay K Jain, chairman of the ICC Textile Committee and managing director of TT Ltd, said, “India must ensure its MMF raw material prices are competitive to capture China’s share in the US market. Otherwise, competitors will continue to source fabric from China and export to the US at lower costs than India.” Raw material protectionism must be addressed urgently, as cotton, polyester, and viscose are currently more expensive in India than in competitor countries such as Vietnam, Bangladesh, and Pakistan. If not addressed, this will become yet another missed opportunity, he warned.
Jain pointed out that China supplies nearly $30 billion worth (about 25 per cent) of textile and apparel products to the US, out of the US’ total annual imports of $120 billion. “We need to analyse the HS Codes that dominate China’s exports and work out a strategy to supply those goods competitively. This could be a great opportunity—if India takes the steps properly,” he said.
The government will also need to work hard to protect the domestic market, as China is expected to supply textile products more aggressively to other markets, including India.
