India has doubled import duties on 328 textile products to 20 per cent, the second such hike in a month.
The move comes after soaring imports from China and focus more on local value addition in the labour-intensive sector.
The move comes amid mounting concerns that a trade war between the US and China would further aggravate dumping of cheaper products from the world’s second-biggest economy despite a weak rupee.
As such, India’s textile imports jumped by 16 per cent to a record $7 billion in the last fiscal, with China accounting for over 40 per cent of the purchases, according to an industry estimate. Also, industry executives have already warned that a 28 per cent hike in cotton prices by the government recently to ensure at least a 50 per cent premium to farmers over costs is expected to raise the basic raw material costs for domestic manufacturers and could hurt our export competitiveness across value chains in the textile and garment sector.
Earlier in the day, a notification to this effect was tabled by Minister of State for Finance Pon Radhakrishnan in the Lok Sabha