India has taken measures to address the problems of the textile industry. The increase in import duty on 76 textile items from 10 to 20 per cent and GST reduction on carpets and handicraft items have given a big relief to domestic textile, carpet and handicraft manufacturers.

The garment and carpet industry was under immense pressure after implementation of GST. After GST, the substantial drop in import duty encouraged cheaper imports. Total imports of textiles and garments increased in 2017-18 by 16 per cent compared to 2016-17. Total import of garments alone increased 30 per cent in 2017-18 compared to 2016-17.

Imports from Bangladesh are an area of concern for the industry. Due to full exemption from basic customs duty for Bangladesh, and lack of a regional cumulation clause under the treaty, third countries' raw material and fabrics get benefitted indirectly. Cheaper fabrics from third countries enter India through Bangladesh. Imports from Bangladesh increased 44 per cent in 2017-18. The industry sees the need to increase import duty on manmade fiber spun yarn as import of manmade fiber yarn-based fabrics have also increased sharply after GST.