Manmade fiber industry seeks cut in excise rate in next Budget

The Indian textile industry has been demanding a level-playing field with respect to cotton for a long time now and some rationalization is expected from budget 2017-18. The textile industry wants the next Union Budget to reduce the excise duty on manmade fibers and bring it on par with that of cotton.

The argument is that garments produced through manmade fibers are primarily used by the economically weaker sections of society.

The manmade fiber requirement of the Indian textile industry is expected to jump by at least five times by 2025 from what it is now.

Yarns made of polyester and synthetics are in good demand. Fibers like nylon and polyester have an excise duty of 12.5 per cent while for other yarns like cotton the excise duty is negligible.

The industry also wants a 20 percent excise duty subsidy on handicrafts and handloom sector goods destined for export to the US and East Europe.
A long term plan to boost textile exports from India would enable India to pull ahead of China by 2020. GST will also come into the picture soon.

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