CITI urges PM to decide on zero-duty access to Bangladeshi garments after proper assessment

06 Sep '11

5 min read

In addition, he added, “Though the same garment manufacturing technology is available to India and Bangladesh, but the operational cost in India is very high. The power cost to the industry is burdened with cross subsidy against availability of gas based power at economical prices in Bangladesh.”

On the other hand, he argued, “Bangladesh Industry has grown strong both technologically and scale-wise and it does not need to be promoted with concessions being contemplated by the Government. Even USA has not given such concessions, considering that Bangladesh should not focus too much on one Industry which will be creating a lopsided growth.”

In view of these points, the CITI Chairman said, “India has to take seriously the consequences for its textile industry if it intends to give duty-free access to Bangladesh in garments.” He, therefore, suggested that “policy decision of allowing of duty free quota garment imports from Bangladesh in India should not be taken in haste. A Committee of Experts (COE) from various textile research associations and experts like SITRA, NITRA, ICRIER and Government and industry's representatives may be formed to examine the various consequences of such decision. Based on the reports of Committee of Experts, Government may deliberate upon the possibilities of tweaking with the existing policy. Till that time, any policy decision leading to change in current status quo should be kept in abeyance.”

“Though the choice of duty free imports access to Bangladesh will prove to be disastrous”, the CITI Chairman hoped that the Government will “take the decision after due-diligence of the effects through a proper assessment”.

In case the Government goes ahead with its decision to allow duty free access to Bangladeshi garments in India, Mr. Jaipuria suggested that “at least the Government should save the country's textile segment consisting of weaving, knitting and spinning by making a pre-condition that the Origin of Fabrics will be Indian alone”.

Since Bangladesh is dependent upon China for fabric supplies, giving duty free access will, therefore, indirectly give access to Chinese textile to Indian market through Bangladesh, he said, and urged the Prime Minister to ensure fairness to Indian textiles industry and Indian employment.

Fibre2fashion News Desk - India

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