India has taken measures to increase the competitiveness of the textile industry.

GST on manmade fiber yarns has been reduced from 18 per cent to 12 per cent. Garments and made-ups have a special package. Rebate of State Levies has been replaced by the Rebate of State and Central Taxes and Levies and will remain in force up to March 31, 2020. Rates under the Merchandise Exports from India Scheme have been enhanced from two per cent to four per cent for garments and made-ups, and five per cent to seven per cent for handloom and handicrafts.

Products such as fiber, yarn and fabric in the textile value chain are being strengthened and made competitive. Assistance is also provided to exporters under the Market Access Initiative scheme.

Interest equalization rate for pre and post shipment credit for exports done by micro, small and medium textile units has been enhanced from three per cent to five per cent. Benefits of the interest equalization scheme have been extended to merchant exporters. Earlier this scheme was limited to manufacturer exporters. To contain the increase in imports of textile and apparel, the basic customs duty on 504 lines comprising apparel, carpets, fabric, made-ups and others has been increased from ten per cent to 20 per cent.