Customs Duty Slash to Benefit Indian Textile Industry

On June 24, Indian Government’s Empowered Group of Ministers slashed the customs duty on crude oil and other petroleum products which will result in the price reduction of synthetic fibers. “This will definitely benefit the textile industry”, said Mr. J. Thulasidharan, Chairman of The Southern India Mills Association (SIMA). In a statement released on June 25, Chairman Thulasidharan hailed the slashing of the customs duty and the reduction in the central excise on diesel. The customs duty slashing should enhance investments in the technical textiles sector in India.

There have been severe and wide spread criticisms by the consumer groups, industrial associations such as SIMA and opposition parties on the price hike in kerosene, diesel and liquefied petroleum gas which are the basic fuel products the Indian consumers use on a daily basis.

It is anticipated that the synthetic fiber manufacturers in India will be able to pass on the duty reduction benefits to the Indian textile industry.