New Delhi: Textile exports of China to India rose by 597.26 per cent in 2005, making it India's leading source of imports in the past five years, according to a study by the Associated Chambers of Commerce and Industry.

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China, which is the largest exporter of textiles and apparel in the world, exported $548.81 million of textiles to India in 2004-05 compared to $78.71 million in 2000-01, the study on 'Post ATC Competitiveness and Protectionism' stated, adding that out of India's total global textile imports of $1502.50 million in 2004-05, China's share was a whopping $548.81 million.

Assocham President Anil K Agarwal said, ''Chinese textile exports to India rose because internationally, their prices witnessed a downhill trend in the period, during which there was intense competition among the leading economies of textile products.'' China, however survived the phase by producing a larger bulk of textile products at lower prices, he added.

The study further highlighted India's strengths stating that India is the second largest producer of cotton yarn and silk and the third largest producer of cotton and cellulose fibre/yarn. |Read more Finance news.|

India is also the fourth largest producer of man-made fibres and yarns and has the largest spindleage in the world with a 23 per cent share.

India's textile industry contributes around 14 per cent in the industrial production and employs around 35 million people apart from the indirect employment, which accounts for around one-fourth of the country's exports.

However, despite its strengths, the domestic textile sector faces certain threats with the phasing out of the global garments quota system in January 2005. Indian exports in the overseas markets and domestic production have felt the impact, with large-scale imports especially in the high and premium fabrics and apparel.