India doubles import tax on textile products, may hit China
It was the second tax hike on textiles in as many months after an increase on other products including fibre and apparels last month.
The moves are expected to provide relief to the domestic textile industry, which has been hit by cheaper imports. India's total textile imports jumped by 16 percent to a record $7 billion in the fiscal year to March 2018. Of this, about $3 billion was from China.
Rising imports sent India's trade deficit with China in textile products to a record high $1.54 billion in 2017/18, alarming industry officials as India had been until recently a net exporter of textile products to China.
Sanjay Jain, president of the Confederation of Indian Textile Industry, told Reuters he did not expect China to retaliate to the Indian duty increases as it still has a trade surplus with India.
India's imports of textile products from Bangladesh, Vietnam, and Cambodia also jumped in the last few years as they are not subject to any duty under free trade agreements (FTA) signed by India with these countries.
Industry officials say in the last few months Chinese fiber has been shipped to Bangladesh and processed and exported to India with zero duty.
India's trade differences with the United States have also been rising since President Donald Trump took office.
India, the world's biggest buyer of U.S. almonds, in June decided to raise import duties on almonds and some other U.S. imports by 20 percent, joining the European Union and China in retaliating against Trump's tariff hikes on steel and aluminum. The increased tariff on U.S. goods will be applicable from Sept. 18.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)