Recent hike in import duties on textile, apparels, fibres and related products has irked global apparel brands selling their products in India. A large number of apparels being sold by global retailers such as Adidas, Zara to name a few import their stock for sell in India.
The hike in import duty would consequently make these apparels costlier by 4-6 per cent for Indian consumers. “It may also adversely impact investments in India by price-sensitive brands such as Hennes & Mauritz (H&M),” CEO of a US-headquartered men’s apparel brand was quoted as saying to media.
H&M has been expanding its presence rapidly in India these days. It recently opened its 33rd store in the country.
Basic Customs Duty has been hiked ranging from 10 to 20 per cent by the government to protect textile industry and employment. Indian textile bodies Tirupur Exporter’s Association (TEA) and Confederation of Indian Textile Industry (CITI) lauded government for taking this commendable move to protect domestic players.
Post hike, textile products being imported from countries like China, Bangladesh, Vietnam, Cambodia and Sri Lanka will face the heat.
“Rather than hiking import duty government should better focus on free trade agreements with the EU and US to make India a strong global sourcing hub,” suggested India head of one of the world’s largest fast fashion retailers while talking to English daily.
RMG import increased from Rs.3,994 Crore in 2016-17 to Rs.4,983 Crore in 2017-18. Additionally, leading India retail stores also started importing from Bangladesh and other countries due to availability of cheaper products.
