Indian Textile Industry Wants Excise Duty Cut On Synthetic Yarn

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Indian Textile Industry Wants Excise Duty Cut On Synthetic Yarn

It also wants a two per cent excise duty to be imposed on cotton yarn - which is zero at present. The Indian synthetic textile industry is valued at Rs 1, 20,000 crore. Growth is driven largely by value added segments. However the share of synthetic textiles in total textiles in India is only 35 per cent as against the global average of 65%. This is due to the high burden of taxes like excise duty. So the industry demands the duty structure to be rationalised & to have a level playing field.

India is one of the world's leading manufacturers of manmade textiles. Due to heavy investments in world-class manufacturing plants, continuous innovation, new product mix and strategic market expansion, Indian manmade fibres are set to take centre stage in the global arena.

Export of manmade fibre yarn in June 2016 registered a year-on-year growth of 35.9%. Polyester is the largest segment of the Indian manmade fibre and rayon textile industry.

Indian exports manmade fibre textiles to more than 146 countries. Turkey, Egypt, Indonesia, Brazil, & Germany are major importers of Indian manmade fibre yarn.