Empowering MSMEs with News & Insights

India plans to reduce import duty on Pakistan textiles to 5%

Updated: Jul 17, 2013 03:26:56pm
image
New Delhi, Jul 17 (KNN)  In an effort to increase cross border trade with Pakistan, India is planning to reduce the tariff on import of textiles from Pakistan to 5 per cent.

Currently, India imposes 30-45 per cent duty on textile products from Pakistan.  Now, the government is planning to bring it down to five per cent and has even not ruled out the option of allowing duty-free access too, according to a Business Standard report.

This would be done by reducing the sensitive list of items India maintains for Pakistan, under which certain items are not allowed from there. This list is maintained under the South Asian Free Trade Agreement (Safta).

“Once the reduced sensitive list under Safta is notified, most of the textile lines would be out, for the benefit of Pakistan. We might bring it almost to the level of Bangladesh,” said the media report quoting a senior commerce department official involved in the process.

This will be done after Pakistan grants India the status of most favoured nation (MFN), or non-discriminatory market access, the official added.

Pakistan mainly exports products from the textiles and clothing sector which are found listed in India’s sensitive list, thus restricting the possibility of Pakistan being able to formally export these products. The main items of informal trade from Pakistan to India are textiles and garments. (KNN)
 

COMMENTS

    Be first to give your comments.

LEAVE A REPLY

Required fields are marked *