India has raised import duty on 328 lines of textile products from 10 to 20 per cent. The increase in customs duties would provide much needed edge to local manufacturers as imported products currently are much cheaper than the ones locally manufactured. This step would ensure nearly 10.5 crore people receive employment as an increase in manufacturing activity will help create jobs in the sector.

The revised duties will help boost domestic manufacturing but least developed countries including Bangladesh will continue to enjoy duty free access to Indian markets. Bangladesh is the largest supplier of most of the goods on which duties are doubled. Due to the high incidence of levies and duties, manmade fiber costs 20 per cent to 30 per cent more as against cheap imports from countries such as China.

Earlier in July, import duty on over 50 textile products including jackets, suits and carpets was doubled. The step was seen as a move aimed at promoting domestic manufacturing. Through a notification, the Central Board of Indirect Taxes and Customs had hiked import duties as well as raised the ad valorem rate for certain items.