The government applied new rules for textile products. It has doubled import duty on over 50 textile products. The products includes jackets, suits and carpets etc.
The aim behind this is to promote domestic manufacturing. The Central Board of indirect Taxes and Custom (CBIC) hiked the duties to 20%.
FIEO DG Ajay Sahai said, “The duties have been doubled on most of the textile product It will help boost domestic manufacturing but least developed countries including Bangladesh would continue to enjoy duty-free access to Indian markets”.
EY Partner Abhishek Jain said: “Aligned to the ‘Make in India’ initiative, the increased customs duty on import of a range of textile products should entail the domestic manufacturing of these products witnessing a growth”.
M S Mani, Partner, Deloitte India said, Don’t Sell Your Car in a Hurry DROOM use the power of A1 to stop ransomware and unknown Sophos Intercept X By Co The customs duty increases on certain finished textile products would lead to a cost advantage for Indian textile manufacturing and advance the ‘make in India’ philosophy.
“Many foreign companies may now consider manufacturing in India to cater to the domestic demand as well,” he added.
Imports of textile yarn, fabric, made-up articles grew by 8.58 percent to $168.64 million in June.