Govt doubles import duty on 328 textile items to 20 pc

Imported innerwear, pyajamas, baby garments, track suits and swimwear will cost more with the government today doubling customs duties on 328 textiles products to 20 per cent.

The move is aimed at promoting domestic manufacturing of these products in the country as part of the Make in India initiative.

The government hiked basic customs duties on items such as carpets, woollen items and ski suits, dressing gowns, druggets, ensemble of silk and artificial fibre, carpets and other textile floorings, and shawls.

The Central Board of indirect Taxes and Custom (CBIC) has notified the list of textile products on which duties have been hiked to 20 per cent.

Earlier in the day, a notification to this effect was tabled by Minister of State for Finance Pon Radhakrishnan in the Lok Sabha.

The notification said it seeks to "increase customs duty on 328 tariff lines of textile products from the existing rate of 10 per cent to 20 per cent...under Section 159 of the Customs Act, 1962".

Increase in duties would give an edge to domestic manufacturers as imported products are currently cheaper.

Increase in manufacturing activity will help create jobs in the sector, which employs about 10.5 crore people.

The textiles industry stated that the move would help promote 'Make in India' as imports of these goods had surged drastically in the last one year especially post GST.

"The decision would would help millions of people get employment in the manufacturing sector of the various segments of the entire value chain," CITI said in a statement.

The government last month had doubled import duty on over 50 textile products -- including jackets, suits and carpets -- to 20 per cent.

According to trade experts, India would not be able to give any direct export incentive to the textile sector, so there is a need to support the segment to encourage domestic manufacturing.