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Imports from B'desh threaten Indore garment industry
30
Dec '11
The readymade garment industry of Indore, the largest city and commercial centre of the central Indian State of Madhya Pradesh, may lose a large part of its business owing to the recent decision of the Government to allow duty-free import of garments from the neighbouring Bangladesh.

“Several large scale apparel manufacturers from the city have already shifted to Bangladesh making a lot of workers unemployed. In fact, the garment manufacturing business in Indore has reduced by about 30 percent during the past few months,” Mr. Ashish Nigam, Secretary, Indore Ready Made Garment Traders' Association told fibre2fashion.

Briefing about the declining demand for Indore-made apparels, he says, “Buyers are hard to find since duty-free goods from Bangladesh have started pouring in all across India, including the southern States of Tamil Nadu and Kerala, our major markets.”

Explaining the difficulty faced by Indore garment manufacturers in competing with imports from Bangladesh, he says, “The cost of a cut-to-finish job for a shirt in Bangladesh is about Rs. 30, whereas in India it is not less than Rs. 80. The finishing cost is also less by 60 percent in Bangladesh. Their finishing is also better than us due to better infrastructure and latest machinery. All this makes it very difficult for us to compete with Bangladeshi goods.”

Elaborating on the dimension of the threat faced by the entry of duty-free apparel from Bangladesh, he says, “All the big malls in India have already started procuring 25-26 percent of goods from China, and now with the entry of the goods from Bangladesh, the continuity of our business is threatened. As a result, around 60-65 percent of domestic industries will come to the verge of closing down.”

“If the current situation continues, then the garment industry will also meet the fate similar to that of toys industry, which has almost vanished from India,” he opines.

Mr. Nigam said they would request the Central Government to stop duty free imports from Bangladesh.

Fibre2fashion News Desk - India

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