India Textile And Garment Import Tariff Has Been Raised By Nearly 10%, And It Is Suggested That The Relevant Enterprises Do A Good Job Of Risk Prevention In A Timely Manner.

In October 27th, the India consumption tax and the customs Central Committee (CBEC) issued a notice on the official website, decided to raise tariffs on textiles and clothing involving customs duties 50 to 63, and raise the import tax rate to 20% to 25% on the basis of the current 10% to 15%.

Products (mainly textile raw materials and 30% import tax rates) remain unchanged.

In 2016, China exported to India textiles and clothing products, a total of more than 100 million U.S. dollars, a total of seven categories, these products after the adjustment of the tax rate, will face 1 to 1.5 times the tax rate increase.

Textiles and clothing in China and India

China is the first source of textiles and clothing imported from India.

According to ITC statistics, in 2016, the total amount of textiles and clothing exported to India totaled US $4 billion 90 million, accounting for 67.3% of the total imports of textiles and clothing in India.

The India's import tariffs will have a huge impact on China's textile and garment export enterprises.

Textile industry occupies an extremely important position in India's national economy.

India's 2016 - 2017 textile industry annual report shows that the textile industry contributes 2% of India's GDP and 10% of the total output value of the manufacturing industry.

13% of foreign exchange earnings.

The strength of India textile industry has been increasing in recent years due to the advantages of adequate labor resources and textile raw materials and government policy support.

At present, India's cotton output ranks first in the world. According to the statistics of the US Department of agriculture, the output of cotton in India reached 6 million 96 thousand tons in 2016.

The cotton textile industry in India has been developing rapidly in recent years due to the negative impact of the non market factors of China's high-quality cotton raw materials resources on China's cotton spinning enterprises. India cotton yarn is mainly exported to China, Bangladesh and Pakistan.

India textile industry has abundant raw material resources, complete industrial value chain, strong competitiveness in production cost, relatively perfect infrastructure, strong professional and language skills of textile workers, and domestic and international trade.

It has many advantages, such as rapid expansion, friendly investment policies, social, political and economic stability.

At the same time, behind the rapid development, there are many problems in India's textile industry.

India textile enterprises are still small in scale, insufficient in investment and relatively dispersed, and the popularization of high-tech production technology still needs to be improved, which limits their production capacity.

Relatively backward management system has also caused certain obstacles to the development of enterprises.

Although the annual export volume of India textile and clothing is nearly 40 billion US dollars, although it has jumped to the second in the world, there is still a big gap between the 270 billion exports of the first China.

In order to protect the development of domestic industries and reverse the unfavorable balance of trade deficit, India will raise the import tax rate in a comprehensive manner, which will give our exports to India textiles.

Enterprises cause greater losses.

It is suggested that the relevant textile and garment enterprises in China should do a good job of risk prevention measures and trade with customers in India.