Finance ministry to notify import duty hike on 300 textile products to boost domestic manufacturing

The duties could be enhanced to 20 percent on products like certain fabrics, garments and man-made fibres. Currently, the duty ranges between 5-10 percent.

Press Trust of India August 06, 2018 18:46:41 IST
Finance ministry to notify import duty hike on 300 textile products to boost domestic manufacturing

New Delhi: The government is likely to hike import duty on about 300 textile products tomorrow with a view to boost domestic manufacturing.

The duties could be enhanced to 20 percent on products like certain fabrics, garments and man-made fibres. Currently, the duty ranges between 5-10 percent.

A notification to this effect is likely to be tabled in Parliament tomorrow, sources said.

Finance ministry to notify import duty hike on 300 textile products to boost domestic manufacturing

Representational image. Reuters.

Increase in duties would give an edge to domestic manufacturers as the imported products are relatively cheaper. Increase in manufacturing activity will help create jobs in the sector, which employs about 10.5 crore people.

Last month, the government doubled import duty on over 50 textile products -- including jackets, suits and carpets -- to 20 percent, a move that is aimed at promoting domestic manufacturing.

Through a notification, the Central Board of Indirect Taxes and Custom (CBIC) had hiked import duties as well as 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.

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 percent to $168.64 million in June.

However, exports of cotton yarn/fabrics/made-ups, handloom products 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 readymade garments dipped by 12.3 percent to $13.5 billion.

Updated Date:

also read

COVID-19 cases surge: Centre flags gaps in containment measures of three states, bans Remdesivir exports
India

COVID-19 cases surge: Centre flags gaps in containment measures of three states, bans Remdesivir exports

Speaking after an all-party meeting held virtually to discuss the COVID-19 situation in Maharashtra on Sunday, state health minister Rajesh Tope said an appropriate decision regarding imposing a lockdown in Maharashtra will be taken after 14 April

Apple to launch a 12.9-inch iPad Pro with a MiniLED display in April: Report
News & Analysis

Apple to launch a 12.9-inch iPad Pro with a MiniLED display in April: Report

Despite facing problems in manufacturing, the company is expected to launch the iPad Pro in two sizes later this month.

Retail inflation jumps to 5.52% in March; factory output contracts 3.6% in February
Business

Retail inflation jumps to 5.52% in March; factory output contracts 3.6% in February

The manufacturing sector — which constitutes 77.63 percent of the IIP — declined by 3.7 percent in February 2021, as per NSO data