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Govt doubles import duty on 328 textile products to 20% to boost production

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

Press Trust of India  |  New Delhi 

Sewn up: Employees sew clothes at the Estee garment factory in Tirupur, in  Tamil Nadu. Relatively high labour cost is costing the textile town its competitive advantage. Photo: Reuters

The government on Tuesday doubled import duty on as many as 328 to 20 per cent to provide a boost to the of these items in the country.

A notification to this effect was tabled by Pon Radhakrishnan in the Lok Sabha.

The notification said it seeks to "increase customs duty on 328 tariff lines of 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 activity will help create jobs in the sector, which employs about 10.5 crore people.

The government had last month doubled import duty on over 50 -- including jackets, and -- to 20 per cent, a move that is aimed at promoting domestic

Through a notification, the (CBIC) had hiked import duties as well as raised the ad-valorem rate of duty for certain items.

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

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, 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 readymade garments dipped by 12.3 per cent to USD 13.5 billion.

First Published: Tue, August 07 2018. 14:32 IST
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