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Related Keywords: bottlenecks, cotton, differential taxation, duty free import, European Union, fibre policy, Garments, India-Mercosr preferential trade agreement, Indian textile industry, man made fibre, Russia, trade agrement

The Indian textile industry representative in their presentation to the Union Government have urged to move forward with the trade agreements proposed with Russia and European Union and also address some of the bottlenecks that the textile and clothing industry is presently facing.

Related Keywords: cotton, cut in excise duty, cut in import duty structure, differential taxation, global demand for fibre, Indian textile industry, lop sided fibre, MMF, rising energy cost, synthetic fibre, Texpreneurs Forum

The Indian textile industry is facing hurdle on account of differential taxation, rising energy cost, lop-sided fibre and trade policy. And this is at a time when the global demand for fibre – both cotton and MMF (man-made fibre) is on the rise.

Stakeholders have sought a cut in the excise and import duty structure for synthetic fibre to deal with the trend. It wants the excise duty to be lowered from the prevailing 13 percent to 4 - 5 per cent and the import duty from 28 percent to 2 - 3 percent.