India Trade Ministry Seeks Removal Of Import Tax On Rayon Grade Wood Pulp

The proposal reflects India’s broader strategy to strengthen its textile value chain and boost exports in a highly competitive sector.  

Policy Objective  

Rayon grade wood pulp is a critical input for viscose fiber production, widely used in textiles. Eliminating import taxes would lower production costs, enabling Indian manufacturers to compete more effectively with global peers.  

Industry Impact  

The textile industry, one of India’s largest employers, stands to benefit significantly from reduced input costs. Analysts believe the measure could improve margins for producers and encourage investment in sustainable fiber production.  

Future Outlook  

If approved, the policy could accelerate growth in India’s textile exports, aligning with government efforts to expand market share in apparel and technical textiles. The move also signals India’s intent to align trade policies with industry needs.  

Policy Highlights  

• Trade Ministry seeks removal of import tax on rayon grade wood pulp  
• Measure aimed at reducing raw material costs for textile industry  
• Expected to boost competitiveness and export potential  
• Supports government’s broader textile sector growth strategy  

Sources: Reuters, Economic Times, Business Standard