The government has doubled import duty on more than 300 textile products for the second time this month, which, Animesh Saxena, Managing Director, Neetee Clothing and Executive Member, Apparel Exporters and Manufactures Association believes, does not auger well for the garment export industry. He believes restricting our fabric basket to cotton is stagnating export growth.
India has doubled import tax from existing 10 per cent to 20 per cent to boost the ailing textile sector, promote local manufacturing and create employment opportunities. This hike will help India's domestic industry, which employs nearly 10.5 crore people and has been facing stiff competition from cheaper imports.
This is for the second time that the government has increased import duty. Last month, the government had doubled import duty on over 50 textile products including jackets, suits and carpets to 20 per cent. However, the 20 per cent duty will not be applicable to products sourced from Bangladesh, Vietnam and Cambodia countries due to the FTA.