Government likely to hike import duties on textile products, domestic industry to benefit

Indian government is likely to hike import duty on over 200 textile products, as per the media reports. The duty on these products can be increased up to 20% from 5-10% currently. This move is very positive for domestic manufacturers.

With this move, the price competitiveness of domestic products will increase. Further, this will allow domestic manufacturers to increase their realisations on the products, which will ultimately aid in margin expansion. Textile sector is one of the highest employment generating sector in India. Hence, this move is expected to create higher domestic employment opportunities as well.

Goods on which duties are expected to be hiked are baby garments, suits, shirtings and woven fabrics, etc, as per the media reports. We expect domestic manufacturers like Siyaram Silk Mills, KPR Mill, Arvind, Raymond, and all other players in this space to benefit from this move.