India doubles duty on textile products
LDCs, including Bangladesh, to continue to get free access
India has doubled import duty on over 50 textile products, including jackets, suits and carpets, to 20 percent seeking to protect and promote domestic manufacturing but made it clear that Bangladesh and other least developed countries (LDCs) will continue to enjoy duty-free access.
The Central Board of Indirect Taxes and Customs (CBIC) under the finance ministry late on Tuesday night notified of a list of textile products on which duties have been doubled. 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,” said Ajay Sahai, director general of the Federation of Indian Export Organisations.
Ernst and Young Partner Abhishek Jain said, “Aligned to the 'Make in India' initiative, the increased customs duty on import of a range of textile products should see the domestic production of these products witnessing a growth.”
The customs duty increases on certain finished textile products will lead to a cost advantage for Indian textile manufacturing and advance the “Make in India” philosophy, said MS Mani, partner, Deloitte India.
Imports of textile yarn, fabric, made-up articles grew by 8.58 percent to $168.64 million in June this year, according to commerce ministry figures.
However, export of cotton yarn/fabrics/ made-ups, handloom products went up by 24 percent to $986.2 million last year.
Man-made yarn/fabrics/made-ups exports grew 8.45percent to $403.4 million. Export of all textile readymade garments dipped by 12.3 percent to $13.5 billion.