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Government doubles import duty on over 50 textile products to 20%

18 Jul 2018 Evaluate

In a major relief to the domestic textile manufacturers, the Central Board of indirect Taxes and Custom (CBIC) has doubled import duty on over 50 textile products to 20 percent from 10 percent earlier. 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.

Federation of Indian Export Organisations (FIEO) DG Ajay Sahai has stated that the increased customs duty on import of a range of textile products will help boost domestic manufacturing. However, he noted that imports from the least developed countries such as Bangladesh would continue to enjoy duty free access to Indian markets.

According to government data, imports of textile yarn, fabric, made-up articles into the country grew by 8.58 percent to $168.64 million in June. However, exports of Cotton Yarn/Fabrics/made-ups, Handloom Products etc. grew by 24 percent to $986.2 million. Man-made Yarn/Fabrics/made-ups exports grew 8.45 percent to $403.4 million. Exports of all textile ready made garments dipped by 12.3 percent to $13.5 billion.

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