Hike in custom duties to discourage cheap imports
Textiles Minister Smriti Zubin Irani said that the hike in customs duty on silk and manmade fibre, announced in the Budget, will discourage cheap imports of textile products from China and benefit the local manufacturers. Increase in customs duty on silk and manmade fibre will discourage cheap Chinese textile products from flooding the market and benefit domestic manufacturers in the power loom sector she said. Of the Rs.6000 crore special package, which was announced in 2016, for the textiles sector, Rs.1800 crore have already been released and Rs.300 crore will be released during the current financial year. The rate of GST on yarn has been reduced to 12% from 18% and on job work has been cut down to 5% from 18%. Support for merchandise scheme has been enhanced from 2% to 5% for the apparel sector.