The government on Tuesday doubled import duty on as many as 328 textile products
to 20 per cent to provide a boost to the manufacturing
of these items in the country.
The notification said it seeks to "increase customs duty on 328 tariff lines of textile products
from the existing rate of 10 per cent to 20 per cent...under Section 159 of the Customs Act, 1962".
Increase in duties would give an edge to domestic manufacturers as imported products are currently cheaper. Increase in manufacturing
activity will help create jobs in the sector, which employs about 10.5 crore people.
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 per cent to USD 168.64 million in June.
However, exports of cotton yarn/fabrics/made-ups, handloom products
grew by 24 per cent to USD 986.2 million. Man-made yarn/fabrics/made-ups exports grew 8.45 pc to USD 403.4 million. Exports of all textile readymade garments dipped by 12.3 per cent to USD 13.5 billion.