India Suddenly Announced!More Than 300 Kinds of Textile Import Taxes Doubled, Chinese Enterprises Bear The Brunt?

Indian authorities decided to double the tax rate on imports of more than 300 kinds of textiles to 20 percent, the Indian newspaper Mint reported last week.In addition, India's textile imports for the tax year rose 16 percent to $7 billion, of which $3 billion came from China, the newspaper said.our company as a buy grey fabric manufacturers ,if you need that pls contact us.

It is worth mentioning that the textile industry plays an extremely important role in the national economy of India.According to the annual report of India's textile industry from 2016 to 2017, the textile industry contributed 2% of India's GDP, 10% of the total output value of the manufacturing industry, and 13% of the foreign exchange generated by exports.India's textile industry has grown in strength in recent years due to its abundant labor resources, textile materials and government policy support.
One of Mr Modi's aims is to win voters' support

In response, Pinaki Roychowdhury, chairman of international business Krasny Projects Private Limited, told Russian satellite news agency ria novosti on Saturday (aug 12) that the Indian government's decision to raise taxes on textile imports was an attempt to win support from light industry workers and cotton farmers in the election.
Pinaki Roychowdhury sees this as a deliberate policy ahead of Mr Modi's election, a political decision aimed at pre-enlisting support from textile workers and cotton farmers.
The chairman also said that current protectionism in India would be a long-term policy, especially if the NLD becomes a force in India's government.

Chinese companies bear the brunt, and India itself is subject to "counter-biting"?

So which companies are affected?Pinaki Roychowdhury argues that Chinese companies bear the brunt of this, but that India's own companies and companies will also be subject to "counter-biting".

"Of course, Chinese companies will be affected, especially those dependent on exports to India.But Indian importers will also be affected, ""Pinaki Roychowdhury added.

In recent years, the textile and apparel trade between China and India has been close.According to the ITC data, China's total export of textile apparel to India was $4.09 billion in 2016, accounting for about 67.3% of India's total textile apparel imports.
As for the reasons, Pinaki Roychowdhury said Indian companies could not make up for the drop in imports with domestic products.

"" the high cost of raw materials, production costs, staff conflict, inefficient management and poor technology will not benefit Indian producers from high (customs) taxes." ""Ultimately this will cost Indian consumers, either by making them pay more or buy less because of a lack of Chinese products," Pinaki Roychowdhury explained.

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