Business

Boost To Domestic Textile Industry, Govt Hikes Import Duty On 328 Items To 20%

JAVED SAIFI | 0
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| August 8 , 2018 , 13:16 IST

In order to boost the domestic textile Industry in the country, the government has doubled the import duties on 328 textile items by up to 20 percent on Tuesday. 

The Central Board of Indirect Taxes and Customs (CBIC) notification said it seeks to "increase customs duty on 328 tariff lines of textile products from the existing rate of 10 percent to 20 percent under section 159 of the Customs Act, 1962".

The government hiked the basic customs duties on imported items such as innerwear, baby garments, pyjamas, swimwear, tracksuits and more.

The move to hike the import duties for products across the textile chain will give an edge to domestic manufacturers in India and would help to promote the Make in India initiative. Textile Industry in the country is currently employing around 105 million people in the country.

Also Read: RBI Hikes Repo Rate By 25 Points To 6.5%

The step is expected to reduce the surge in imports of textile products, which grew by 16 percent in 2017-18 as imports from Bangladesh have increased by 44 percent from $140 million in 2016-17 to $201 million in 2017-18.

The imports of textile fabric, yarn and made-up articles grew by 8.58 percent to $168.64 million in June.

Last Month, the government doubled import duty on over 50 textile products to 20 percent.

The government is also planning to hike import duties on imported televisions, refrigerators and washing machines, thereby reducing India’s dependence on such items.