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17 July 2018
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| Textile Product(The Total Investment & Insurance Solutions) |
The government has doubled import duty on
over 50 textile products — like jackets, suits and carpets — to 20 per cent, a
move that is aimed at promoting domestic manufacturing. The Central Board of
indirect Taxes and Custom (CBIC) late last night notified list of textile
products on which duties have been hiked to 20 per cent. It has also raised the
ad-valorem rate of duty for certain items. The imported products which have
become expensive include woven fabrics, dresses, trousers, suits and baby
garments. “The duties have been doubled on most of the textile products. It
will help boost domestic manufacturing but least developed countries including
Bangladesh would continue to enjoy duty free access to Indian markets,” FIEO DG
Ajay Sahai said.
Experts said as per WTO norms, India will not
be able to give any further incentive to the textile sector and the government
has increased the import duties with a view to encourage domestic
manufacturing. EY Partner Abhishek Jain said: “Aligned to the ‘Make in India’
initiative, the increased customs duty on import of a range of textile products
should entail the domestic manufacturing of these products witnessing a
growth”. The Total Investment &
Insurance Solutions
The customs duty increases on certain
finished textile products would lead to a cost advantage for Indian textile
manufacturing and advance the ‘make in India’ philosophy, said M S Mani,
Partner, Deloitte India. “Many foreign companies may now consider manufacturing
in India to cater to the domestic demand as well,” he added. Imports of textile
yarn, fabric, made-up articles grew by 8.58 per cent to USD 168.64 million in
June. However, exports of Cotton Yarn/Fabrics/made-ups, Handloom Products etc.
grew by 24 per cent to USD 986.2 million. Man-made Yarn/Fabrics/made-ups
exports grew 8.45 pc to USD 403.4 million. Exports of all textile ready made
garments dipped by 12.3 per cent to USD 13.5 billion.The Total Investment & Insurance Solutions
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