Import duty on 328 textile products doubled, domestic manufacturers to benefit
Indian government has hiked import duty on 328 textile products. The duty on these products have increased from 10% to 20%. This move is very positive for domestic manufacturers. This decision will bring relief to domestic manufacturers, promote make in India and boost job creation.
With this move the price competitiveness of domestic products will increase. Further, this will allow domestic manufacturers to increase their realisations on the products, which will ultimately aid in margin expansion. We expect domestic manufacturers to increase prices of the textile items covered in the list by 4-5%. This will aid the manufacturers to increase their margins and provide some comfort against volatility in the cotton prices. This move will further increase the demand of the cotton in India.
Textile sector is one of the highest employment generating sectors of India. Hence, this move is expected to create more domestic employment opportunities as well.
Goods on which government has hiked duty, are carpets, baby garments, woman’s lingerie, suits, shirtings, and woven fabrics, etc. We expect domestic manufacturers like Siyaram Silk Mills, KPR Mill, Arvind, Raymond, Page, Rupa, Ashapura, etc., and all other players in this space to benefit from this move.
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