The government’s decision to increase import duties on textile, apparels, fibres and related products has annoyed global apparel brands selling their products in India. This hike would make apparels costlier by 4-6 per cent for Indian consumers. It may also adversely impact investments in India by price-sensitive brands such as Hennes & Mauritz (H&M). Post hike, textile products being imported from countries like China, Bangladesh, Vietnam, Cambodia and Sri Lanka will face the heat.

Basic customs duty has also been hiked ranging from 10 to 20 per cent to protect textile industry and employment. Indian textile bodies Tirupur Exporter’s Association (TEA) and Confederation of Indian Textile Industry (CITI) lauded government for taking this commendable move to protect domestic players. RMG import increased from Rs 3,994 crore in 2016-17 to Rs 4,983 crore in 2017-18. Additionally, leading India retail stores also started importing from Bangladesh and other countries due to availability of cheaper products.