Govt to hike import duty on 300 textile products
According to government sources, the Finance Ministry may soon issue a notification in this regard. If the government decides to notify the duty hikes this week, then it would have to be first tabled in Parliament.
The government is likely to hike import duty on about 300 textile products to boost domestic manufacturing and create employment opportunities. Foreign direct investment norms for the sector may also be relaxed. Products on which imports duties are expected to increase includes some fabrics, garments and man-made fibres. The duties could be enhanced to 20 per cent from the current level of about 5-10 per cent.
According to government sources, the Finance Ministry may soon issue a notification in this regard. If the government decides to notify the duty hikes this week, then it would have to be first tabled in Parliament. Increase in duties would give an edge to domestic manufacturers as the imported products are relatively cheaper. Increase in manufacturing activity will help create jobs in the sector, which employs about 10.5 crore people.
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