In what could be a boost to the ‘Make in India’ campaign, the central government on Tuesday doubled the import duty on 328 textile products. The new import duty on these products is now 20 per cent as compared to the previous duty of 10 per cent.
The move could help the domestic textile manufacturing industry, helping them offer products which are more affordable. An increase in the production capacity could help generate employment for around 10 crore people.
Some of the items which will now become costlier following the hike in customs duty include imported swimwear, pyjamas, undergarments, tracksuits, etc. In addition to these items, carpets, druggets, dressing gowns, shawls, ski suits, woollen goods, etc. will also be more costly.
The move is likely to have an impact on the import of textiles from countries like Sri Lanka, China, Turkey, and Vietnam. Imported garments have traditionally been cheaper than local produced ones, with this hike in duties giving local products a competitive edge.
Sources: Times of India, Financial Express