The Depreciation Of Indian Rupee Reduces The Import Of Clothing

With the devaluation of the Indian rupee, there is no price difference between India and Bangladesh in the cost of garment manufacturing.

The devaluation of the rupee is not only affected by India spin clothing Exporters' welcome, but also reduced the price of domestic clothing.

Since the Indian government allowed 48 kinds of textile products to be imported from Bangladesh at zero tariff, direct textile imports from Bangladesh increased significantly in 2011.

The rupee has depreciated by about 20% since September 2011, and India has allowed zero tariff imports of textiles from Bangladesh since September 2011.

From September 2011 to March 2012, India imported 1.8 billion dollars of textile products from Bangladesh, compared with 587 million dollars before zero tariff import was allowed.

The lower labor cost and the elimination of import tariffs have made the ready-made clothes imported from Bangladesh about 20-15% cheaper than those made in India.

But it has now been offset by the depreciation of the rupee. In recent months, clothing imports from Bangladesh are estimated to have decreased by 60-70%.

At present, Indian retailers are seeking to purchase from domestic enterprises instead of importing from Bangladesh, because the import price has increased significantly due to the depreciation of the rupee.

At present, most Indian retailers purchase domestic products, so Indian domestic enterprises will definitely benefit.

Since 2009, Bangladesh has snatched some of the export markets of Indian textile products. In 2011, the growth rate of Bangladesh's clothing export was 16%, while India's clothing export in 2010-2011 only grew by 4%.