Interviews
Industry protests against concessions granted to Bangladesh
02 Sep '11
2 min read
CMAI (The Clothing Manufacturers Association of India) expressed its complete Shock and Dismay at the recent reports of Indian Government being willing to Open up 48 Textile Items, currently under the Sensitive List, to be allowed to be Imported from Bangladesh Free of Duty.
Mr. Rahul Mehta, President, CMAI emphasized that more than 80% of the Domestic Apparel Industry of India is still in the Small and Medium Scale Sector. This is the Sector which provides the Second Largest Employment to Semi-skilled Workers, especially the Women of the Country. “It is incredible that the Government is not considering the Potential Impact on the Employment scenario of the Country by encouraging Imports rather than Domestic Production” said Mr. Mehta.
“Even by conservative estimates, the likely Imports of US$ 2.5 billion per year, could result in a Loss of Employment in the Indian Garment Industry of nearly 1.25 Million Jobs” emphasized Mr. Mehta.
In-spite of the obvious dangers in Opening up of the Market to a Low Cost Producing Country, the Industry had in its various interactions with the Government, offered that 14 of the 48 Items requested by the Bangladesh Government, be Opened-up for Duty Free Imports.
Surveys by CMAI amongst Indian Retailers confirmed the fact that the Larger Retailers had already started Buying Huge Quantities of their requirements from Bangladesh after 10 Million Pieces were permitted to be imported without Duty. This trend will only turn into avalanche if the entire Industry is Opened up for Free Imports.
CMAI fervently hopes and requests the Government to reconsider its stand and not Permit unrestricted Duty Free Imports of Readymade Garments from Bangladesh where Wages and other Costs Production are substantially Lower than those prevailing in India.
Mr. Rahul Mehta, President, CMAI emphasized that more than 80% of the Domestic Apparel Industry of India is still in the Small and Medium Scale Sector. This is the Sector which provides the Second Largest Employment to Semi-skilled Workers, especially the Women of the Country. “It is incredible that the Government is not considering the Potential Impact on the Employment scenario of the Country by encouraging Imports rather than Domestic Production” said Mr. Mehta.
“Even by conservative estimates, the likely Imports of US$ 2.5 billion per year, could result in a Loss of Employment in the Indian Garment Industry of nearly 1.25 Million Jobs” emphasized Mr. Mehta.
In-spite of the obvious dangers in Opening up of the Market to a Low Cost Producing Country, the Industry had in its various interactions with the Government, offered that 14 of the 48 Items requested by the Bangladesh Government, be Opened-up for Duty Free Imports.
Surveys by CMAI amongst Indian Retailers confirmed the fact that the Larger Retailers had already started Buying Huge Quantities of their requirements from Bangladesh after 10 Million Pieces were permitted to be imported without Duty. This trend will only turn into avalanche if the entire Industry is Opened up for Free Imports.
CMAI fervently hopes and requests the Government to reconsider its stand and not Permit unrestricted Duty Free Imports of Readymade Garments from Bangladesh where Wages and other Costs Production are substantially Lower than those prevailing in India.
CMAI (The Clothing Manufacturers Association of India)
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