(MENAFN- KNN India)
New Delhi, Jul 25 (KNN) In a significant move to enhance India's export competitiveness, the Union Budget 2024-25 has introduced key changes in customs duties for the textile and leather industries.
The government's proposals aim to reduce manufacturing costs and bolster the country's position in global markets.
The budget includes a reduction in basic customs duty on real down filling material from duck or goose, used in textile and leather garment manufacturing for export.
This measure is expected to directly benefit manufacturers of high-end winter wear and bedding products, potentially leading to more competitive pricing in international markets.
Another important change is the lowering of the custom duty rate on spandex from 7.5 per cent to 5 per cent. This reduction is likely to benefit manufacturers of stretch fabrics, sportswear, and other garments that require elasticity, potentially improving the quality and affordability of these products in the export market.
The government has also eliminated the 10 per cent duty on wet white, crust, and finished leather for manufacturing export-oriented textile/leather garments, footwear, and other leather products.
Additionally, the budget introduces zero basic customs duty on certain accessories and embellishments used in manufacturing export-oriented textile/leather garments and footwear. This change is aimed at reducing the overall cost of production for value-added products, making Indian exports more attractive in the global market.
Industry experts have welcomed these measures. Rahul Mehta, chief mentor for the Clothing Manufacturers Association of India, stated, "The cost of manufacturing garments which use these materials will come down by 4-5 percent. This will either make exporters more competitive in the global market or increase their profit margins."
Suresh Nair, partner at EY India, echoed this sentiment, calling it "a positive move for exporters" that will "definitely give exporters a competitive edge in the market." These changes are expected to particularly benefit manufacturers of down jackets, high-end leather goods, and performance wear.
By reducing input costs, the government aims to boost exports in these sectors, potentially leading to increased foreign exchange earnings and job creation. The budget's focus on export-oriented industries aligns with India's broader economic strategy to increase its share in global trade.
As international markets become increasingly competitive, these duty reductions could prove crucial in maintaining and expanding India's foothold in the textile and leather export segments.
(KNN Bureau)
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