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    India'S Textile Tax Rebate Raises Huge Impact On China

    2008/9/3 0:00:00 10251

    Textile

    As part of the textile tax rebate increase in China a month ago, the India government announced that it would raise some textile rebates starting from September 1st.

    According to the insiders, China's tax rebate raised pressure on India. This India's "follow suit" tax rebate is targeted, indicating that the competition between China and India is increasing in the international market.

    It is reported that the India government announced that the rebate rate of elastic yarn should be raised from 7.6% to 9%, and the rebate rate of elastic fabrics should also be raised from 6.5% to 7.6%.

    "The basic principle of the India government is the reduction of raw materials tax rebates and the increase of textile and clothing tax rebates. Because of the large volume of cotton exports in India, they hope to reduce the export of raw materials and encourage the export of finished products," said Wang Qian, editor in chief of the first textile network.

    According to the Ministry of Commerce's "Textile Business Week", India's export rebate rate has great impact on China. "As the world's second largest textile and garment producer, India has continuously introduced a series of measures to encourage export in recent years, making China's textile industry more competitive in the international market."

    According to the analysis, although the adjustment rate of India textile export tax rebate rate is not very large, it has an impact on a considerable part of China's small and medium-sized textile export enterprises.

    It is reported that the main export market of India's textile and clothing is the original quota market of the United States, the European Union and Canada, and the main export market of China's textile and clothing is the original quota market of Japan, China, Hongkong and Korea.

    The market share of textiles between China and India in the United States is relatively low. In 2005, China was 25.12% India 5.18%, 2006 China 29.02% India 5.39% 5.39% last year 1~7 month China 32.10% India 5.73%

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