In a move that’s expected to make winter wear, athleisure, sportswear and bottom wear cheaper, duties have been cut on real down-filling material from ducks and geese, widely used in winter wear, along with those on methylene diphenyl diisocyanate (MDI) used for making spandex yarn.
Govt has cut the basic customs duty on MDI from 7.5% to 5%, which is likely to reduce the cost of stretchable cloth used to manufacture apparel. Similarly, duty on down-filling material has been reduced from 30% to 10%.
“The duty relaxation in trims, accessories and raw materials will help bring down costs and make the apparel industry more competitive,” said Rahul Mehta, chief mentor of the Clothing Manufacturers’ Association of India. Other measures in the Budget, such as incentives and subsidies for employees, and benefits for labour-intensive industries will also aid the sector, he added.
However, there will be no reduction in price-tags of cotton apparel due to unchanged duties and taxes amidst volatile prices of domestic cotton, said Vijay Mevawala, president, Southern Gujarat Chamber of Commerce and Industry. M P Muthurathinam, president of Tiruppur Exporters and Manufacturers Association, was disappointed over inadequate relief to MSMEs. “In Tirupur, 50% of MSME apparel makers have exited the industry due to huge losses,” he said.
