What are HSN codes, and why did India introduce 32 new HSN codes for technical textiles?

India’s Ministry of Textiles has introduced 32 new HSN codes for technical textiles items to be used for imports and exports. The move is aimed at boosting the country’s textile industry, particularly in the man-made fiber (MMF) and technical textiles sectors.

The new HSN codes, which are under Chapter 39, 54, 55, 56, 59, 60, 62, 63, and 68 of ITC (HS) 2022, Schedule 1 (Import Policy), have been introduced in reference to the Production Linked Incentive (PLI) Scheme notified by the Ministry of Textiles. The scheme aims to promote the production of technical textiles and MMF products in India, which are considered areas of growth.

The list of 32 HSN codes includes items such as nylon 66 filament yarn, ultra-high molecular weight polyethylene filament yarn, viscose rayon, fabrics made of 100% inherent FR synthetic fiber, NBC warfare suits, high visibility warning clothes, and more. The government has provided a list of the 32 HS codes in Annexure-1 for easy recognition, facilitating the industry to book their imports and exports under the correct product category.

The move is expected to provide a major boost to the Indian textile industry, which has been facing tough competition from countries like China and Bangladesh. The introduction of new HSN codes will not only facilitate the import and export of technical textiles items but will also help in the development of domestic manufacturing capabilities.

The PLI scheme, which was launched last year, offers incentives worth Rs 10,683 crore to eligible companies for a period of five years. Under the scheme, eligible companies are required to invest in new plant and machinery and must meet certain production targets. The scheme is expected to create additional employment opportunities and boost exports of technical textiles.

The Indian government has been making concerted efforts to promote the textile industry in the country. In September last year, the government announced a Rs 1.70 lakh crore package to boost the industry, which was hit hard by the COVID-19 pandemic. The package included measures such as increasing credit limits for small and medium enterprises, providing subsidies for interest on working capital loans, and extending the time limit for payment of all statutory dues.

The Indian textile industry is one of the largest in the world and contributes significantly to the country’s economy. According to data from the Ministry of Textiles, the sector employs over 45 million people and contributes 2.3% to India’s GDP. The introduction of new HSN codes for technical textiles items is expected to provide a major boost to the sector and help in the country’s overall economic development.




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