Published on February 2, 2015

Textile sector has been operating at moderate levels in the country. This sector needs extra focus from government as the sector has been struggling from last few years to book profit for the manufacturers. In a recent move the government heading textile department has directly made a request to PMO office for rationalization of duties. Around 12% of excise duty is being imposed on man-made fibers where as no duty is imposed on cotton fibers. This disparity has been a major irritant in the development of textile sector in India. If the recommendations of the textile ministry are well accepted by the government than it will prove to be major boost for this struggling sector.

The textile association has requested for reduction in excise duty from 12% to 6% to the central government recently. This reduction will help the man-made fibre manufacturers to sustain in the industry.  Again the basic raw material used like PTA, MEG, Polyester filaments and fibre  and polyester films are imposed with 5%import duty apart from anti dumping duty in the range of $19.05-117.09 per tonne for the purchase from Chna, Thailnd, Kora and other European nations.

The textile industry is already bearing the heavy burdens of rising cost of power, VAT charges, and many more extra duties. This sector needs special government attention and focus to drive out from loss making sector.