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Garment prices may decline on zero-duty access to Bangladeshi items
Sep '11
The prices of garments in India may decline by as much as 15-25 percent if India makes 48 items tariff-free, as requested by Bangladeshi garment Industry.

Clothes from Bangladesh have lower price tag than those of India. With their arrival in the country by February 2012, the price of garments would become initially stable and may be expected to decline in summer of 2012.

Bangladeshi garment industry is mainly export-oriented, and it already supplies apparels in large volumes to the US and European markets. Hence, it would be no surprise if the apparels are also liked by Indian consumers.

In fact, some of the Indian companies have already started placing their orders with Bangladeshi garment exporting firms.

Industry analysts say if the duty-free quota is allowed to Bangladeshi garments entering India, then some of the well-known retail brands might even shift their production base to the neighbouring country and import the garments into the country through duty-free access.

These companies will also be able to source some of the raw materials at lower prices from Bangladesh.

Thus, allowing zero-duty access to Bangladeshi garment in India would be cheered by retailers and consumers alike because of high quality at lower prices.

Fibre2fashion News Desk - India

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