The textile industry has welcomed the doubling of import duty on 328 textile items and urged the Centre to introduce the ‘rules of origin’ clause for imports from Bangladesh.
The Clothing Manufacturers Association of India said in the last five years, there had been a close to 100% rise in import of apparel products. While customs duty had been raised, specific duties have seen no change. About 70% of apparel imports are from Bangladesh and China.
As the former has zero duty access for all apparel products, the customs duty hike will not impact those imports. In the case of Chinese garments, it is the Specific Duties that apply and not the Ad Valorem duty. The Confederation of Indian Textile Industry said that Chinese fabric is entering India duty free through Bangladesh.