The Northern India Textile Mills’ Association (NITMA) commends the government for its decision to impose Basic Customs Duty (BCD) of 20% or ₹115 per kg (whichever is higher) on nine HS codes under Chapter 60 of Synthetic Knitted Fabrics. This move is a crucial step toward curbing under-invoiced imports and misdeclaration of HS codes, which have long affected the domestic textile industry.
However, it is important to note that these nine HS codes account for only 35% of total fabric imports, leaving 65% of imports unchecked.
Industry Concerns & Urgent Appeals
While appreciating the government’s proactive approach, NITMA President, Mr. Sidharth Khanna, urges authorities to take further action:
1️⃣ Ministry of Finance & Ministry of Textiles:
Extend BCD to all HS codes under Chapter 60 – Importers have historically shifted HS codes to evade Minimum Import Price (MIP) regulations, and they are likely to do the same to avoid BCD. The remaining 65% of imports must be included to ensure fair competition.
2️⃣ Directorate of Revenue Intelligence & Port Authorities:
Strengthen surveillance at all Indian ports to prevent misdeclaration of container HS codes, pricing, and weights, which continue to undermine domestic manufacturers.
3️⃣ Enforcement Directorate & CBI:
Launch an in-depth investigation into under-invoiced imports of synthetic knitted fabrics.
Review customs data for the past 12 months – Any fabric consignment cleared at less than $3.50 per kg should be scrutinized and subjected to strict penalties to deter fraudulent practices.
A Positive Outlook for the Textile Sector
Mr. Khanna also applauds the Union Budget 2025-2026, highlighting key initiatives such as:
✅ A 58% increase in the overall textile budget
✅ ₹1,148 crore allocation under the PLI scheme to boost textile manufacturing
✅ ₹500 crore for the 5-Year Cotton Mission to enhance productivity, especially for extra-long staple cotton
✅ No income tax payable up to ₹12 lakh, leading to increased consumer spending on apparel and a boost for the entire textile value chain
While these are significant positive steps, NITMA strongly recommends extending BCD to all HS codes under Chapter 60 to fully protect the domestic textile industry.
