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    India Textile Industry Faces Threats From Imports Of Products From Bangladesh

    2011/12/28 16:24:00 19

    Bangladesh Tariff Threat In India Textile Industry

    Local India

    Spin

    The industry has been invaded by China.

    Worry

    And now faces new threats from another neighbouring country, Bangladesh.


    India's domestic textile industry is worried about Bangladesh's exemption.

    tariff

    Imports of products will further affect their business operations.

    They also worry that China may abuse tariff free facilities to destroy the textile industry in 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, real estate tax and so on. Besides, the cost of labor is very high. However, Bangladesh enterprises do not have such tax burden, and the labor cost in Bangladesh is about 40% lower than that in India.

    ,


    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.


     
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