(MENAFN- KNN India)
New Delhi, Jan 30 (KNN) The textile sector, a key pillar of India's economy, faces critical challenges, including high customs duties on cotton imports, rampant under-invoicing of knitted fabric imports, and the need for extended export incentives and broader PLI (Production-Linked Incentive) coverage.
The industry, which contributes approximately 4 per cent to the nation's GDP, 13 per cent to industrial production, and 8 per cent to merchandise exports, also employs around 4.5 crore people directly.
A major concern for the sector remains the customs duty on cotton imports. The imposition of an 11 per cent duty in 2021 has led to a significant price gap between domestic and international cotton, making Indian cotton uncompetitive.
According to the Northern India Textile Mills Association, this cost disparity has made cotton spinning operations unviable in India.
The industry is now urging the government to abolish the customs duty on cotton to alleviate this crisis and enable duty-free imports.
Another pressing issue is the rampant under-invoicing of knitted fabric imports, particularly from China. Industry experts estimate that this malpractice leads to a staggering revenue loss of approximately Rs 5,000 crore annually, weakening domestic manufacturers and fostering an unregulated parallel economy.
The textile sector is calling for a permanent solution to curb undervalued imports and safeguard the industry's financial health.
Export incentives remain another focal point for textile businesses. The RoDTEP (Remission of Duties and Taxes on Exported Products) scheme has been extended until September 2024, and the Advance Authorisation scheme until December 2024.
However, to achieve the ambitious target of USD 350 billion by 2030, with USD 100 billion in exports, industry leaders are requesting an extension of RoDTEP until September 2025 and the restoration of its rates for textile products.
Additionally, the current PLI (Production-Linked Incentive) scheme benefits only synthetic fibres. The textile industry is advocating for its expansion to include the entire sector, ensuring greater investment inflows and widespread growth.
With the right policy interventions, the sector is optimistic about achieving long-term sustainability and competitiveness on a global scale.
(KNN Bureau)
MENAFN30012025000155011030ID1109150144
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.