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In order to boost the textile industry, India’s removal of chemical fiber import tariffs

According to recent foreign reports dated February 21, the Confederation of Indian Textile Industry (CITI) has announced a series of measures aimed at boosting the domestic textile sector. As part of these efforts, CITI has decided to remove import tariffs on chemical fibers and eliminate anti-dumping duties. Additionally, it is considering maintaining the consolidated excise duty on textiles at 4%, which would also result in a reduction of the excise tax on chemical fiber products to 4%. This move is expected to lower production costs and enhance competitiveness for Indian textile manufacturers. CITI highlighted that while the ratio of man-made fiber to cotton fiber consumption in India was 41:59 in the 2009/10 period, the global market now sees a much higher share of man-made fibers, with a ratio of 60:40. This shift reflects the growing dominance of synthetic fibers in global textile production. However, despite this trend, the share of man-made fiber-based textile and apparel exports from India has been declining in recent years. The decision by CITI is seen as a strategic step to revitalize the industry and align it more closely with global market dynamics. By reducing taxes and removing trade barriers, the government hopes to encourage domestic production and improve export performance in the long run.

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