Textile Supply Chain resilience is driving India’s Ministry of Textiles to propose duty reductions and regulatory relaxations aimed at ensuring steady raw material availability and shielding the industry from disruptions caused by the ongoing West Asia crisis, as rising input costs and shipping uncertainties begin to impact production targets and global competitiveness.
As part of the proposal, the ministry has recommended lowering import duties on rayon pulp and select cotton varieties, while also seeking a deferment of anti-dumping duties on specific yarn categories. These measures aim to ease cost pressures and maintain supply continuity for textile manufacturers.
The ministry is currently in discussions with the agriculture and finance ministries to align on policy decisions. It has also proposed the removal of the Minimum Import Price (MIP) on certain knitted fabrics to support the industry amid escalating input costs.
According to government sources, while some stakeholders support the elimination of import duties due to insufficient domestic production, farmer interests remain a key consideration in the decision-making process.
In parallel, the government is encouraging textile exporters to diversify into East Asian markets following a sharp 19% year-on-year decline in readymade garment exports in March, largely attributed to disruptions in West Asia.
India had earlier provided temporary relief by exempting cotton imports from the 11% duty for four months until December 31 last year, primarily to counter high tariffs imposed by the United States. Cotton imports in India are typically limited to specialised varieties such as extra-long staple cotton, sourced mainly from the US and Egypt. Rayon pulp imports, subject to a 5% duty, are largely sourced from Europe.
Additionally, in response to the geopolitical situation, the government recently granted full customs duty exemption on 40 petrochemical products, of which 29 are used in the textile sector—particularly in the production of manmade fibres.
These proactive measures reflect the government’s intent to safeguard India’s textile value chain and strengthen its resilience amid global uncertainties.
Source: ET Retail
(Rewritten & adapted by Indian-Apparel.com News Desk)
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