CMAI supports customs duties levied on apparels by the government

The government recently announced that they would raise customs duties on over 300 textile items, which received a positive response from the Clothing Manufacturers Association of India (CMAI).  

The government’s announcement of hike in customs duties for some apparel products has been welcomed by Indian manufacturers of apparels. The announcement made recently, states that the customs duties for a large number of apparels and carpets products has doubled, said Mr Rahul Mehta, President, The Clothing Manufacturers Association of India (CMAI). Mr Mehta thanked the Hon’ble Minister of Textiles, Smt Smriti Irani for accepting the industry’s recommendations, which would bring relief to the domestic apparel industry, encourage domestic manufacturing and boost job creation as well.

The government recently hiked the customs duties on 328 textile products to 20 per cent in a move to promote domestic manufacturing under the Make in India initiative. Hence, imported innerwear, pyjamas, track suits, baby garments, and swimwear would now cost more. Basic customs duties have also been increased on woollens, shawls carpets, textile floorings, dressing gowns, druggets, ensemble of silk and artificial fibre. 

The domestic apparels market will certainly get a boost with this move and even help in creating jobs in the sector. At present the sector employs about 10.5 crore people and is the second largest job provider after agriculture in the country. Besides, the industry has around 15 per cent of the country’s exports totally, which makes it the second largest exporter in the world, after China.

The government’s move also seeks to protect Indian manufacturers from suffering due to a bitter Sino-US trade war. Sri Lanka, Bangladesh and Vietnam, who have quite favourable trade treaties with India, which includes Free Trade Agreements (FTAs) and benefits from other pacts, are making it tough for India. Moreover, China was evading duties and was indirectly exporting its products through Vietnam, Sri Lanka and Bangladesh by upgrading its products a little. Now, the tariff wall will compel it to use this escape route to get access to the market.


   

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