Indian textile body, the Confederation of Indian Textile Industry (CITI), has welcomed the government’s move to announce increase in Basic Customs Duty (BCD) on 328 textile products. The decision has been taken in order to protect domestic industry.
Imported woven fabrics, dresses, trousers, suits and baby garments would be costlier after the hike. Post GST, India witnessed a drastic increase in imports.
“Doubling the import duty on textile products where imports have increased many-folds, post GST has come as sigh of relief for textile industry,” stated CITI Chairman Sanjay Jain in a statement issued.
The textile body had been vocal on the issue of rise in imports of yarn, fabric, made-ups and garments made out of man-made fibers & filaments.
Increase Basic Customs Duty (BCD) on imports of such products would safeguard a large number of factories in MSME and organized mill sector which have been manufacturing these products in the country.
CITI Chairman is sure that this move would certainly benefit the industry by boosting “Make In India” initiative of the Government of India. It would increase employment opportunities for millions of people in the country in the manufacturing sector of the various segments.
However, CITI is apprehensive about imports from Bangladesh as the country has been given full exemption of Basic Customs Duty. It also paves way for Chinese fabric in India through Bangladesh in the form of Garments. CITI opined that Rule of Origin clause is needed to be in place to deal with this situation.
He further stated that revision in import duty has covered MMF Spun Yarn and MMF based Fabrics, though industry still needs to do a detailed analysis on this.