India substantially reduces import duties on textile products

Indian exporters said that India’s drastic reduction in export tax rebates made them feel uneasy, which may have a negative impact on the apparel, leather, handicraft and metal industries.

Sakthivel, president of the Indian Export Organization (Fieo) Alliance, said that the export tax rebate rate for apparel, leather, metal crafts, carpets and certain products was cut, which will affect the employment of these industries.

Last Saturday, the Central Government of the Central Government of the Central Government of the People's Republic of China (CBEC) reduced the tax rebate rate (the import tax rate for imported raw materials), and some products were cut by as much as 30%.

Although India’s exports grew by 28.6% in April-August, certain industries such as clothing, handicrafts, handlooms and carpets have just recovered from the global economic downturn in 2008-09.

Exports from these labor-intensive sectors are severely affected by the weak recovery in demand in major markets, such as the United States and the European Union.

The export tax rebate for cotton garments has been reduced from the current 8.8% to 7.7%.

The tax rebate rate for blended garments (including cotton/man-made fibres) has been reduced from 9.8% to 8.6%.

The new tariff came into effect on September 20.

In a letter to the Minister of Finance, the Export Promotion Council**Premal Udani said that the recession in the ready-made apparel industry is far from over. The industry encountered unprecedented increases in the prices of basic raw materials such as raw cotton, cotton yarn and fabrics. The shrinking export means the loss of job opportunities.

Tax refunds for other departments have also been lowered. The tax rebate rate for leather and leather products is reduced by 5-15%. The number of bicycles and sporting goods is lowered by 9-20%, and that of steel products by 25-30%.

Stainless steel vessels and cutlery, tax rebate rate from 12.5% ​​to 8.8%.