New Delhi (ANI) [India] : To stimulate textile exports, the central government has abolished all customs tariffs on cotton imports until September 30, 2022.
In a statement, the Central Board of Indirect Taxes and Customs (CBIC) announced that cotton imports would be exempt from customs tax and the Agriculture Infrastructure Development Cess (AIDC).
The notification states, “This notification shall take effect on April 14, 2022, and will continue in effect until and including September 30, 2022.”
The textile industry, including yarn, fabric, clothing, and made-ups, would gain from this exception, as well as customers. Textile exports will also profit, according to the ministry.
The Federation of Indian Export Organizations expressed gratitude to the Finance and Textile Ministers for lowering the customs duty on raw cotton from 10% to zero, claiming that duty-free imports of raw cotton boosted exports of value-added cotton textiles.
“It will considerably drive exports of garment and made-up sectors by reducing the pricing of yarn and textiles as well,” said Dr. A Sakthivel, President of FIEO.
Cotton textile exports will be boosted further, according to the FIEO Chief, as high cotton prices are damaging the competitive advantage.
He went on to say that India has lately grown its market share in garment exports to the United States and other nations, and that the signing of CEPA with the UAE and Australia will help to accelerate this. “Similar arrangements are being worked up with the United Kingdom, Canada, the European Union, the Gulf Cooperation Council, and the SACU,” he added.
Dr. Sakthivel stated that the government has provided all necessary support to the textile industry, and that by 2030, textile exports should exceed USD 100 billion. (ANI)