India's yarn exports to PRC fell by half after trade war.

As the US-China trade war started, India’s export of yarn to China reduced by half, according to Northern India Textile Mills' Association (NITMA) president Sanjay Garg, who said the yarn not exported to China became domestic surplus, resulting in trade imbalance. The demand fall raised the inventory of finished goods, blocking the working capital of manufacturers, he said.

In an interview with a leading textile magazine, Garg attributed this to be one of the major causes forcing the industry to curtail production.

He urged the government to set up a market facilitation cell to help the Indian industry diversify its export markets and products and develop a mechanism to leverage and navigate regional trade agreements.