The central government is
planning to hike import duty on as many as 504 textile products post receiving
recommendation from the Ministry of Textiles, a move aimed at boosting domestic
The recommendations, have
reportedly, been accepted by the Finance Ministry.
It was the second tax hike on
textiles in as many months after an increase on other products including fibre
and apparel in July.
The duty hike has already
been imposed on 170 textile products last month and for the remaining, it will
be announced any time soon.
The proposed recommendation
for up to 20 percent import duty on textile products are World Trade
Organization (WTO) compatible.
There were reports of up to
90 percent imports seen in products which led to recommendation for duty hike.
The foreign direct investment
norms for the sector may also be relaxed.
Products on which imports
duties are expected to increase includes some fabrics, garments and man-made
fibres. The duties could be enhanced to 20 per cent from the current level of
5-10 per cent.
Rising imports sent India’s trade deficit with
China in textile products to a record high $1.54bn in 2017-18, alarming
industry officials as India had been until recently a net exporter of textile
products to China.