India'S Textile Industry Faces Threats From Bangladesh

India's local textile industry has been beset by China's invasion, and now faces new threats from another neighbouring country, Bangladesh.

India's domestic textile industry is worried that Bangladesh's import of duty free products will further affect their business operations.

They also worry that China may abuse tariff free facilities to destroy Indore and India.

Ashish Nigam, President of Indore garment and apparel Traders Association, said that China's cheap products and heavy taxes in India have already reduced our business by nearly 35%. Now, cheap products from Bangladesh may havoc the local textile industry.

Nigam explained that the gap between production costs of Bangladesh and India's production costs may be as high as 50%.

We are charged with consumption tax, licence fee, value added tax, water tax, property tax and so on.

Nigam explains, for example, we need 65-70 rupees for a shirt, and only 30 rupees in Bangladesh.

He said that no major shopping mall in Bangladesh sells clothing made in Indore.

Bangladesh products will be leveraged to quality because they have modern chemical plants, which have the latest technology.

At present, there are about 2200 garment factories in Indore, and 1/5 of local industry workers work in the clothing industry.