A wave of happiness in the country’s textile industry, import duty on cotton is removed for 42 days

Cotton import duty: India has given exemption in import duty on cotton from 19 August to 30 September. This has brought relief to the country’s textile industry, which is already struggling with the rising prices of raw materials and challenges like American tariffs. People associated with this industry said that exemption will help in making this sector more competitive. In the order issued late on Monday night, a temporary exemption in customs duty was announced on cotton imports.

High tariff on shipment in America

America first imposed 25 percent tariff on India. After this, he also threatened to put an additional 25 percent tariff for the purchase of crude oil from Russia. At the same time, other Asian countries such as 20 percent on Bangladesh, 20 percent on Vietnam and 30 percent on China have been imposed on China, which is less than a huge tariff of 50 percent imposed on India.

This demand was placed in front of the government

Industries bodies like the Confederation of Indian Textile Industry (CITI) urged the government to withdraw the import duty on cotton. Before this exemption, there was 11 percent duty on the import of cotton. Now the officials associated with this industry are hopeful that the government will keep the import of cotton on duty free even after September.

Reuters had earlier reported in their report that some Indian expoters are looking for manufacturing options in other countries to avoid the impact of high tariffs. The country’s garment sector was already struggling with the reduction in labor and its limited production capacity. Now if the expoters start manufacturing in other countries, then it will be a challenge for the government’s ‘Make in India’ initiative.

This challenge came to India

India aims to increase textile exports to $ 100 billion by 2030. The problem of American tariff has come at a time when India is emerging as a strong option for clothing customers in America as Bangladesh is facing political uncertainty and companies are trying to diversify their supply chains beyond China.

Rose in shares

Here, after this news came, the shares of many companies like Arvind Limited and Page Industries saw a boom. Where Arvind Limited shares crossed 300 with a bounce of two and a half percent. At the same time, Page Industries shares reached 44965 with a gain of Rs 275.

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