Govt. doubles duty on over 50 textile items

Aims to boost domestic production

The government has doubled import duty on more than 50 textile products — such as jackets, suits and carpets — to 20%, a move that is aimed at promoting domestic manufacturing.

The Central Board of Indirect Taxes and Customs has also raised the ad-valorem rate of duty for certain items. Imported products that face the new duty include woven fabrics, dresses, trousers, suits and baby garments.

“Duties have been doubled on most of the textile products. It will help boost domestic manufacturing but least developed countries including Bangladesh would continue to enjoy duty free access to Indian markets,” FIEO Director General Ajay Sahai said.

Experts said as per WTO norms, India would not be able to give further incentive to the textile sector and the government had increased the import duties to encourage domestic manufacturing.

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.” Imports of textile yarn, fabric, made-up articles grew by 8.58% to $168.64 million in June.

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