The discriminatory tax policies and the higher tariffs imposed on Man-Made Fibres (MMF) in India compared to cotton, have resulted in the availability of MMF to the manufacturers at non competitive prices, compared to the competing countries. This has also resulted in restricting the growth and investments in the industry as well as constraining the country’s textile exports. The paper posits the need for reducing the cost of production of the man-made fibres through implementing a fibre neutral policy, like it has been done in competing countries such as China. This can encourage more players to the MMF industry, given the rising clothing requirements in the country and will increase the export price competitiveness of MMF-based textile items.
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