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    Bangladesh Garments Are Duty-Free Into &Nbsp; India Textile Enterprises Are Facing A Threat.

    2011/10/9 15:16:00 23

    Bangladesh Clothing Duty Free India

    Not long ago,

    India

    The government announced that it would exempt 46 textile tariffs imported from Bangladesh.

    For Bangladesh clothing exporters, the move is undoubtedly good news, Bangladesh's textile will be more significant.

    Price advantage

    Entering the India market.

    However, some India textile enterprises are worried that the reduction of Bangladesh clothing products prices will weaken the competitive advantage of India's local clothing and pose a threat to the operation of domestic enterprises.


    India di Rupp, a textile enterprise representative, pointed out that

    tariff

    After the relief, imports from Bangladesh were 20% cheaper than those produced locally in India.

    Because of this advantage, Bangladesh's textile and clothing products will take this opportunity to flood into India and occupy the domestic market.

    It is understood that India's duty free access to Bangladesh's clothing products includes shorts, shirts, blouses, skirts, children's wear, cotton pajamas, jeans, swimsuits and sports coats.


    At present, Bangladesh imports yarn and fabrics from many countries, such as China, Korea, Taiwan, Thailand and India.

    Some India enterprises believe that only the garments made of India yarns and fabrics should be given the duty free import right, while the garments produced from other countries' raw materials should be subject to a 20% tariff.

    According to TEA, the export of Bangladesh clothing is now higher than that of India at present.

    In the fiscal year 2010/2011, Bangladesh exported 15 billion US dollars in clothing and 11 billion 160 million dollars in clothing exports in India.

    The association pointed out that the textile industry in India will face more severe competition. The implementation of the proposal may affect the employment of 35 million India textile workers and the fate of a large number of small and medium-sized garment factories.


    In India, the textile and garment industry provides the main employment.

    Due to the possibility that the monk tax exemption mechanism may have an adverse effect on the local textile industry, the India Textile Federation has applied to the government for reconsideration of the specific implementation of the mechanism.


    Bangladesh garment manufacturers and Exporters Association said that in the 2010/2011 fiscal year, Bangladesh's clothing exports amounted to 19 billion US dollars.

    Among them, clothing exported to India amounted to 35 million dollars, which accounted for only 28 billion of India's clothing.

    market share

    0.0013%.

    Insiders pointed out that once the bill is implemented, this proportion may rise sharply.


     

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