Increasing tariffs will create advantages for domestic producers as relative imported products will be relatively more expensive. This move is to help the domestic industry expand production, create more jobs. India's textile and garment industry is attracting and employing about 100 million people. Last month, the government doubled import tariffs on more than 50 textile products including jackets, clothing and mats. According to trade experts, India will not be able to offer any direct export support policy to the textile and apparel industry, so support is needed to encourage domestic production. Imports of yarns, fabrics, ornaments increased by 8.58% to US $ 168.64 million in June. However, exports of cotton, yarn, and handicrafts increased 24% to 986.2 million yen million dollars. Exports of artificial fibers and fabrics increased 8.45% to 403.4 million USD. Export of textiles and clothing decreased 12.3% to $ 13.5 billion. In the last fiscal year, imports of textiles and garments from India stood at $ 7 billion, up 16 percent over the same period last year, China alone imported $ 3 billion, trade deficit with China Nations in this industry is $ 1.54 billion. According to Sanjay Jain, the new regulation does not apply to India that has signed FTA bilateral and multilateral Free Trade Agreements.
Vietnam Trade Office in India