New Delhi, April 14:To boost textile exports, the central government has waived all customs duties on cotton imports till September 30, 2022.
The Central Board of Indirect Taxes and Customs (CBIC) announced the exemption from customs duty and Agriculture Infrastructure Development Cess (AIDC) on cotton imports and stated: "This notification shall come into effect on April 14, 2022, and will remain in force up to and inclusive of September 30, 2022."
The textile industry, including yarn, fabric, garments and made-ups as well as customers will benefit from this exception. The ministry further added that Textile exports would also benefit from this move.
The Federation of Indian Export Organisations expressed gratitude to the Finance and Textile Ministers for reducing the customs duty on raw cotton from 10 percent to zero and said that the duty-free import of raw cotton pushed exports of value-added cotton textile.
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Dr A Sakthivel, President of FIEO stated that "It will push exports of apparel and made-up sectors significantly by softening the prices of yarn and fabrics as well."
FIEO Chief added that cotton textile exports will get a further boost as the high prices of cotton were impacting the competitive edge.
He further said that India has expanded its market share in apparel exports in the US and many countries recently and the signing of CEPA with UAE and Australia will further accelerate it.
"Similar arrangements are being worked out with the UK, Canada, EU, GCC and SACU," he said.
Dr Sakthivel stated that the Centre has provided all support to the textile sector and we should endeavour to reach USD 100 billion in textile exports by 2030.
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-PTC News