Indian government has imposed import duty on several textile products. The Make in India initiative has been taken as India has continuously been losing its garment manufacturing business to Vietnam, China and Bangladesh.
CBIC, Central Board of Indirect Taxes and Customs have announced double tariffs on 50 textile products to 20%. Indian government has also raised tax based on value of an item, the ad valorem rate of duty for certain items. The affected products include woven fabrics, dresses, knitted garments, suits, carpets, trousers and baby clothes.
However, India’s fashion designers are concerned about the higher cost of fashion input materials which recently are mostly being purchased from China and Hong Kong for high quality. India’s exports are currently posing a challenge as the record shows a downward trend. Additional tariffs on textile input imports are bound to make exports more expensive and less competitive.
In June, the textile imports showed an increase of 8.58% to US$168.64 million. Whereas, the textile ready-made garment exports showed a dip of 12.3% to US$13.5 billion.