The government’s decision to waive customs duty on cotton imports will help boost exports of value added products of textiles, Federation of Indian Export Organisations (FIEO) President A Sakthivel said on Thursday.
The move, he said, will promote exports of apparel and made-ups sectors significantly by softening the prices of yarn and fabrics as well. The finance ministry on Wednesday waived customs duty on cotton imports till September 30, a move which will benefit the textile industry and lower prices for consumers. Currently, cotton imports attract 5 per cent Basic Customs Duty (BCD) and 5 per cent Agriculture Infrastructure Development Cess (AIDC). The industry had been demanding a duty waiver to lower domestic prices.
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The Central Board of Indirect Taxes and Customs (CBIC) notified the exemption from customs duty and AIDC for import of cotton. Cotton textile exports will get further boost as the high prices of cotton were blunting the competitive edge, Sakthivel said.
He added that India has increased its market share in apparel exports in the US and many other countries recently and the signing of free trade pact with the UAE and Australia will further accelerate it. The government has provided all support to the textile sector and we should endeavour to reach USD 100 billion of textile exports by 2030, he added.