According to recent foreign reports dated February 21, India's Confederation of Indian Textile Industry (CITI) has announced a series of measures aimed at boosting the domestic textile sector. The initiative includes removing import tariffs on chemical fibers and abolishing anti-dumping duties. Additionally, CITI is considering maintaining the consolidated consumption tax on textiles at 4%, which would also lower the tax rate on chemical fiber products to 4%. These changes are expected to provide much-needed relief to local manufacturers and encourage the use of domestically produced synthetic fibers.
CITI highlighted that in the 2009/10 period, the ratio of man-made fiber to cotton fiber in India was 41:59. However, globally, the ratio stands at 60:40, showing that man-made fibers now dominate the textile material market. Despite this shift, the share of Indian man-made fiber-based textile products in the country's overall exports of textiles and apparel has been declining. This trend has raised concerns among industry leaders, who believe that without supportive policies, India could lose its competitive edge in the global textile market.
The proposed tax reforms are seen as a step in the right direction, but many experts argue that more comprehensive strategies—such as investment in research and development, infrastructure improvements, and better access to international markets—are essential for long-term growth. With the global demand for sustainable and cost-effective fabrics on the rise, India has an opportunity to position itself as a major player in the textile industry once again.
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