What’s in the news?
- Union Minister of Textiles, Commerce and Industry Piyush Goyal said that the annual growth rate of the technical textiles sector in the country should be in the 15%-20% range in the next five years, from the current 8%.
- A technical textile is a textile product manufactured for non-aesthetic purposes, where function is the primary criterion. Technical textiles include textiles for automotive applications, medical textiles, geotextiles, agrotextiles, and protective clothing.
- He said it is time to target a five times’ increase in export of technical textiles in three years.
- The world market for technical textiles is $250 billion and India’s share is $19 billion. The biggest players are the U.S., West European countries, China and Japan.
- In January 2019, the government issued 207 HSN Codes for technical textiles and in less than two years, India had become a net exporter of technical textiles.
- It also unveiled the National Technical Textiles Mission in February last year. In FY21, India’s major share of technical textile exports was in PPEs, N-95 and surgical masks, and fabric for PPEs and masks.
- As many as 92 technical textile items have been made mandatory for use by government organisations covering agriculture, horticulture, highways, railways, water resources, and medical applications.
- India has a major presence in packaging textiles, geotechnical textiles, and agricultural textiles.
About HSN Code
- The Harmonized Commodity Description and Coding System generally referred to as “Harmonized System” or simply “HS” is a multipurpose international product nomenclature developed by the World Customs Organization in 1988.
- It is a six-digit code that classifies more than 5000 products, arranged in a legal and logical structure. To achieve uniform classification, the HSN is supported by well-defined rules and is accepted worldwide.
- HSN code is used by customs authorities, statistical agencies, and other government regulatory bodies, to monitor and control the import and export of commodities.
- India has been using HSN codes since 1986 to classify commodities for Customs and Central Excise.
- HSN classification is widely used for taxation purposes by helping to identify the rate of tax applicable to a specific product in a country that is under review. It can also be used in calculations that involve claiming benefits.
Significance of HSN
- It acts as a universal economic language and code for goods and an indispensable tool for international trade.
- The system helps in harmonising customs and trade procedures thus reducing costs in international trade.
- HSN code removes the need to upload details about the goods which makes filing of GST returns easier in India.