With much speculations and talk, the Indian Government has decided to take necessary steps to boost the country's indigenous textile industry. The government is planning to increase important duty on certain textile items and readymade garments with the objective of increasing the domestic textile production thereby pushing the industry forward. The main objective of this step is to decrease the ever-increasing unemployment rates in the country and provide for the youth.
Sources say that there will be lax in the laws regulating foreign direct investment in the textile industry, thereby creating possibilities of large investments that are clearly needed in the dying industry. With an increase of up to 10 percent in the import duty, import of certain fibres and garments will surely drop. This will allow a little space for the domestic industry to breathe. The finance ministry is due to make an announcement regarding these changes.
Being an industry that employs 10.5 crore people, the textile industry sustains many families. Imported textile and garments are much cheaper than the manufactured ones for which it were killing the employment of many. Now with the necessary laws to be passes in the Parliament, good news awaits the domestic textile industry. With already high import duty on certain items like jackets, the government plans to raise the tax to the same standard for over 300 other items.
India being a lesser exporter of readymade garments has very little room to give export incentives. This is the very reason for which the government has planned the above. One can hope that this step taken by the government works for the best.