The Central Board of Indirect Taxes and Customs (CBIC) has announced that import duties on 50 textile products will be doubled. The move, which comes in the wake of increasing imports from countries like China, Vietnam, and Bangladesh, may not be enough, writes Gagan Singla

India as a country has been very vocal about its support for indigenous industries in the last half a decade or so. It has a rich textiles heritage, with artisanal tradition dating back to the third century. However, more recently their survival had become rather challenging. The prominence has diminished gradually, largely due to competition from foreign goods. The government of India has systematically targeted to improve the situation under the Make in India initiative. In its latest attempt, the Central Board of Indirect Taxes and Customs (CBIC) has announced that import duties on textile products will be doubled.

 

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CBIC's decisions on textile products

Such a move from the CBIC comes on the back of India's steady decline in the garment manufacturing business due to imported products from countries like China, Vietnam, and Bangladesh. This is not the first time that such an initiative has been undertaken. In October 2017 too, the CBIC had increased import duties on textiles.

However, back then, it was applicable to more number of products. Despite these measures, the apparel industry witnessed a downtrend in exports, which was also reflected in their performance in the share market. Yet, at the same time, the imports of textile fabric, yarn and other production related materials increased significantly at the rate of 8.58 per cent.