Market opens to foreign fabrics and garments
IN a move to open up the textiles market, the Indian Government is permitting the import of every variety of fabric and garments through the special import licence (SIL) route.
Earlier, the government had announced its decision to allow import of fibres, yarns and industrial fabrics under the Open General Licence scheme.
The textiles opened up for import by the authorities include woven and knitted fabrics and made-ups including carpets, floor covering, towels and rubberised textile fabrics.
Also included in the list are all types of ready-made garments.
Anyone will be allowed to import any fabric, garment or made-up listed in the notifications, through the SIL scheme, for which the premium in the market ranges at the moment between 12 and 13 per cent.
This premium is in addition to the import duty of 65 per cent currently prevailing on all these items.
If the government reduces the peak duty levels in the forthcoming 1995-96 budget (scheduled to be announced by on March 15), the import duty will automatically be reduced to that level.
The step follows the signing of bilateral trade treaties with the United States and European Union authorities.