Sanjay Jain, Chairman, ICC National Textiles Committee feels, 10 per cent basic customs duty on cotton imports will increase the cost of cotton shirts, dresses and home textile linen in India by around 5 per cent. As per Confederation of Indian Textile Industries (CITI), India imports up to 15 lakh bales of cotton annually vis-a-vis around 390 lakh bales of crop size cultivated in the country.

However, the reduction of 5 per cent BCD on caprolactum, nylon chips and nylon fiber and yarn will make saris, dupattas, kurtis and other apparels made of nylon yarn cheaper. In India, Surat alone produces 6,000 metric tons nylon chips – 37 per cent of total national production.

Rakesh Choudhary, a nylon chip manufacturer said, the reduction of BCKD on nylon chips, caprolactam and nylon yarn will reduce working capital requirement of weavers. It will also reduce the cost of production in tyre, fishnet, automobile and other technical textile sectors where nylon chips are used.