NEW DEHLI, AUG 8: India doubled the import tax on more than 300 textile products to 20 per cent on Tuesday as the world’s biggest producer of cotton tries to curb rising imports from China.
This move is also expected to lead to higher price of clothing in the country, as higher imports and competition in recent years have seen prices dip.
It was the second tax hike on textiles in as many months after an increase on other products including fibre and apparels last month.
The moves are expected to provide relief to the domestic textile industry, which has been hit by cheaper imports. India’s total textile imports jumped by 16pc to a record $7 billion in the fiscal year to March 2018. Of this, about $3bn were from China.
The government did not disclose details of the 328 textile products that will be subject to the duty increase announced on Tuesday.
Rising imports sent India’s trade deficit with China in textile products to a record high $1.54bn in 2017-18, alarming industry officials as India had been until recently a net exporter of textile products to China.