Industry against specific duty removal

Domestic manufacturers are opposing the government’s stand of phasing out the specific import duties.Reena Mital reports.

The government is seriously considering removal of the specific rates of import duty on textiles and clothing, and may come to a decision on the same within the next few months.

However, the Indian manufacturers are opposed to this move, as the threat of imports today is more real than ever. Speaking to Express Textile, Mr K A Samuel, secretary general, Federation of Indian Art Silk Weaving Industry (FIASWI), said, “Already, a lot of imports are coming in from China. With removal of the duties, the decentralised sector would be the worst hit. We are requesting the government not to withdraw the specific duties, and if at all the duties have to be withdrawn, some form of protection will need to be put in place for the powerloom sector.”

The government, it is learnt, has sent out a proposal on the same to some of the apex textile bodies - Federation of Indian Art Silk Weaving Industry, Indian Cotton Mills Federation (ICMF), Indian Woollen Mills Federation (IWMF), and the Clothing Manufacturers ssociation of India (CMAI).

Says Mr Rahul Mehta, former president, CMAI, “CMAI was in the forefront in proposing the imposition of the specific duty rates. However, as this is now being looked upon as a form of protection, the government is planning to do away with the same. We are suggesting that this be done in a phased manner.” The government had also commissioned a study on the impact of removal of duties on imports in India, under SAFTA , to KSA Technopak. The industry believes that removing specific duty rates for only the SAFTA countries, and specifically Pakistan, Bangladesh, Sri Lanka, could finally mean that other WTO members could also demand similar concessions. “Besides, there is a feeling in the industry that a lot of Chinese textiles could come into India via these countries,” said Mr Samuel.