NEW DELHI: Textiles Minister Smriti Zubin Irani said that the hike in customs duty on silk and manmade fibre, announced in the Budget, will discourage cheap imports of textile products from China and benefit the local manufacturers.
“Increase in customs duty on silk and manmade fibre will discourage cheap Chinese textile products from flooding the market and benefit domestic manufacturers in the power loom sector,” Irani said while addressing media in New Delhi on Budget allocation for the Ministry.
“Of the Rs.6000 crore special package, which was announced in 2016, for the textiles sector, Rs.1800 crore have already been released and Rs.300 crore will be released during the current financial year,” Irani informed.
In the Budget 2018-19, an outlay of Rs 7,148 crore has been proposed for the textile sector.
The Minister also spoke about 100% increase in allocation for textiles sector for skill development.
“The correction in the GST (Goods and Services Tax) rates on hand made and machine made garments has created ease of doing business in these sectors,” she said.
The rate of GST on yarn has been reduced to 12% from 18% and on job work has been cut down to 5% from 18%. Support for merchandise scheme has been enhanced from 2% to 5% for the apparel sector.