The Indian government is developing 40 new Harmonized System of Nomenclature (HSN) codes for the technical textiles sector.
Indian textiles Minister Sriti Irani on 29 January released 207 HSN codes (Harmonized System of Nomenclature) for technical textiles sector in Mumbai. The codes can help to achieve a sectoral market size of up to ₹2 lakh crore by 2020-21, said the Minister.
HSN code is an international commodity description and coding system developed by the World Customs Organization.
India is a member of the World Customs Organization (WCO) since 1971. It was originally using 6-digit HSN codes to classify commodities for customs and Central Excise. The codes will facilitate monitoring of export data and providing financial support to the Indian Textile Sector.
“Globally, the technical textiles market is around 200-250 billion US dollars with a very high compounded annual growth rate (CAGR) and India is still not in the forefront in terms of the annual growth rate of the sector,” said Ravi Kapoor, Secretary of Ministry of Textiles here.
“Indian government is currently discussing the mandatory use of technical textiles in over 90 areas,” he said while speaking at an industry event on – Technical Textiles: Technologies, Markets and Investments.
“There is a need to have private sector participation in government’s research system with a time-bound output strategy”, he added.
HSN codes used around the world and its importance
The main purpose of HSN codes is to classify goods from all over the world in a systematic and logical manner. This brings in a uniform classification of goods and facilitates international trade.
The HSN system is used by more than 200 countries and economics for reason as in importance:
- Uniform classification
- Base for their Customs tariffs
- Collection of international trade statistics.
The reason behind take initiative of HSN codes in the Indian textile sector
In the absence of clear classification of technical textile sector, many genuine manufacturers were not getting various incentives being allowed to the technical textile sector by central and state governments, said an official release.
To help investors enter the technical textile sector, the ministry has set up 11 Focus Incubation Centers (FIC), was said by Irani at the conclave.
The ministry has also undertaken 40 geo-textiles projects for roads centers. Water reservoirs ensured that farmers embrace agro tech at 54 agro tech demonstration.
“We have already trained over 22000 Indians only in this area of technical textiles in the past 3-4 years, she said.
The minister while speaking in an industry event, notified the government’s plan to make use of technical textiles in over 90 areas mandatory.
To raise the potentiality from the technical textile sector, they try to approach a comprehensive method for technical textile sector’s entrepreneurs. In this aspect, HSN code will help to make a comprehensive formula in monitoring export data.
Finally, it is known to all that technical textiles is a ‘sunrise industry’ and there is a need for an ecosystem for time-bound research in the institutions for technical textiles segment, the minister highlighted in a statement.
Adding that the global market size of technical textiles is around $200-250 billion with a ‘very high’ CAGR. However, India lags with respect to the annual growth rate of the sector.