The import menace

While India has a vibrant export industry in the textiles sector, the last few years have seen a marked increase in imports even as exports stayed range-bound. According to ICRA, the trend is due to protectionist measures by the US and China. For instance, India's textile trade surplus has been consistently declining over the past few years as exports have remained range-bound with a slight negative bias, while imports have increased at a compounded annual growth rate (CAGR) of -7 per cent between FY2014 and FY2018. Here's a closer look: