The Indian textile industry has started facing problem as competing nations like Pakistan, Vietnam, Cambodia, South Korea, Bangladesh started getting larger benefits and open window market access. Textile industry to enhance its exports wants low tariffs or duty free access.

C K Narayanasaami, Chairman, SIMA Cotton Development & Research Association and K Selvaraju, Secretary General, Southern India Mills' Association (SIMA) met the Commerce minister Nirmala Sitharaman during her visit to Coimbatore and handed over a 10 point memorandum with the industry's demands.

The association flagged how textile products from India attract very high tariff rates in all the major markets like China, EU, USA, Canada, Australia. In comparison, those from Pakistan, Vietnam, Bangladesh, South Korea, Indonesia, Cambodia either attract very low tariff or have duty free access.

The Textile industry has requested the Centre to extend the 3 percent interest subvention for all textile products. It also wants MEIS scheme benefits to be extended to cotton.

It also asked the government to exempt domestic supply of capital goods under the EPCG scheme from terminal excise duty by introducing suitable bond procedure as against obtaining refund at a later date.

It further wants the Commerce ministry to remove the condition that certain percentage of exports should be carried out within the "block period".

It have further urged the government to remove import duties and reduce the central excise duty from 12.5% to 6% and also withdraw anti-dumping duties, remove the 6% central excise duty on shuttleless looms (projectile) and 12.5% on other shuttleless looms (air jet looms, rapier looms and water jet looms) and spares & accessories.

The association wants the Centre to ask Bangladesh to remove duty on Indian cotton yarn. Cotton yarn import is subject to customs duty of over 36% in Bangladesh.