Government hikes import duty on textile products
The Centre Government on Tuesday raised import duty to 20% on around 328 textile products (including garments, scarves, baby garments, pyjamas, and carpets) as a part of its strategy plan to support the ‘Make in India’ initiative and domestic manufacturers.
The import duty hike will make the imported products costlier, as a result of which, the domestic manufacturers will be benefited. The industry is already facing a tough challenge from cheaper imports. Parliament on Tuesday doubled the import duty to 20% for most textile products. The tariff hike comes after recent raise across several sectors, from mobile phone to TV sets.As the decision comes in, the sector is expected to boost employment and local production apart from boosting demand for raw material like cotton. President of the Confederation of Indian Textile Industry told Reuters that despite the hike, he did not expect China to retaliate to the Indian duty as it still has a trade surplus with India. Textile product imports of India could fall to $6 billion in 2018-18 as a result of the import duty hike to 20%, he added.