Large Seizure of Undeclared Fabric at Mundra Port

The Directorate of Revenue Intelligence (DRI) has seized 100 containers of misdeclared Chinese fabric at Mundra Port, with an estimated value of ₹200 crore. The shipment, falsely declared as low-cost fabric, actually contained high-quality textiles meant to evade import duties.

Importers Exploiting Loopholes in Minimum Import Price (MIP)

Despite the Indian government’s imposition of a Minimum Import Price (MIP) on 13 HSN codes to curb surging fabric imports, traders have found ways to bypass restrictions. Many have shifted imports to non-MIP codes, particularly under Chapter 60, making enforcement difficult.

Textile Industry Appeals to Government for Action

The Northern India Textile Mills’ Association (NITMA) has urged Prime Minister Narendra Modi to intervene, highlighting the severe impact of unchecked fabric imports on local manufacturers and government revenue. They have called for policy adjustments in the upcoming Union Budget 2025–26 to prevent further financial damage.

Strengthening Fair Trade and Domestic Industry Protection

This crackdown is part of India’s broader commitment to ensuring fair trade practices and protecting its textile industry from unfair competition. With rising concerns from domestic manufacturers, further regulatory measures may be introduced to curb illegal imports.