The customs duty on certain textile machinery has been reduced by the Government. The industry was insisting on the same as the Union Budget 2023-24 had increased the Basic Customs Duty (BCD) on all textile machinery, spares and accessories from 5 per cent to 7.5 per cent to be effective from 1st April 2023 to till 31st March 2025.
The duty on weaving machines which was to be 8.25 per cent from 1st April, has been brought back to zero (as per earlier).
Now, BCD for several specialty weaving machinery, knitting machinery, sewing machinery parts, components, etc., classified under certain tariff headings have been reduced from 7.5 per cent to 5 per cent.
The Government has issued the notification giving relaxation for certain key machinery, spares and accessories, apart from bringing shuttleless looms under nil rate of duty.
The decision is significant as in Indian textile industry, the weaving segment has been the weakest link in the entire textile value chain next to processing sector. The weaving sector is predominantly in the decentralised sector and the country has hardly around 10 per cent of the looms in the shuttleless looms category resulting in lower value addition, high cost of production, etc.
Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA), said that though the EPCG scheme is in existence to facilitate the import of textile machinery at nil rate, with the high volatility in the supply and demand, the industry could not fulfil the export obligation within the prescribed time and facing difficulties.
He also added that in the absence of Technology Upgradation Fund Scheme (expired on 31st March 2022) this decision would enhance the global competitiveness for the weaving, knitting, garmenting and technical textiles segments to a certain extent.
Bharat Tex Special Report 2026 
