In the 2024 budget, the Indian government has implemented several changes to customs duties aimed at supporting the textile and leather industries. These changes include:
Reduction in Basic Customs Duty (BCD) on Inputs: The duty on MDI, a key input for manufacturing spandex yarn, has been reduced from 7.5% to 5%. This measure addresses the issue of duty inversion, making domestic production more cost-effective .
Duty Reduction on Down Filling Materials: The BCD on Real Down Filling material from duck or goose, used in the manufacture of textile and leather garments for export, has been significantly reduced from 30% to 10% .
Exemptions for Leather and Textile Inputs: Exemptions have been extended to include Wet white leather, crust, and finished leather used in the manufacture of textile or leather garments, leather/synthetic footwear, and other leather products intended for export. Additionally, certain accessories and embellishments used in these products are now exempt from customs duty (TaxGuru).
These changes are part of a broader strategy to enhance domestic manufacturing capabilities and support the "Make in India" and "Atmanirbhar Bharat" initiatives. By reducing the cost of raw materials and inputs, the government aims to boost the competitiveness of India's textile and leather industries on the global stage.
