Government Raises Import Duty on 328 Textile Products to Curb Imports

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As the economy like India which has the bigger Import ratio than the exports are needs to settle down the account to ensure debts. India recently raised its import duty on 328 Textile products to 20% to curb imports. As textile industry in India was ate its glory once; now a day on verge of doom day. It is the second hike in a month.
As the world’s largest cotton producer sought to curb soaring imports from China and focus more on local value addition in the labor intense sector. This particular move of India comes amid mounting concerns that a trade war between the USA and China would further aggravate dumping of cheaper products from the world’s second biggest economy despite a weak value of Rupee.
India’s Textile imports has jumped by 16 % to a record $7 billion in the fiscal year 2016 – 2017, with China accounting for over 40 % of the purchases, according to an industry estimate. The government also issued a notification in Lok Sabha said “increase customs duty on 328 tariff lines of textile products from the existing rate of 10 % to 20% under the section 159 of the Customs Act, 1962”.
What the government needs to do now to increase the employment in the county and increase jobs in the textile industry is to give it more privileges. There are more abut 10.5 crore people was associated with the textile industry. On the latest scheme of Government of India “Make In India” the government has doubled the import duty import duty on over textile products including jackets, suits, carpets, gloves, handcarts, ornaments and other products to 20 percent. According to the trade experts, India would not be able to give any direct export incentive to the textile sector, so there is a need to support the segment to encourage domestic manufacturing.

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