Chinese garments now enter India through land route

23 Jul '12

2 min read

Garments were included in the revised list of tradable items through the India-China border, issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, Government of India, in May this year.

With the enforcement of the notification, India has opened three border points from where traders with special passes are allowed to duty-free import readymade garments from China.

The three land routes form where duty-free import of Chinese garments is now being allowed are Gunji in Uttarakhand, Nathu La in Sikkim and Namgiya Shipkila in Himachal Pradesh.

However, traders have raised concern that the step might lead to inflow of low-cost goods from China. West Bengal, Punjab and Uttar Pradesh, which fall in vicinity of the three land points, would be the most affected, they add.

The DGFT notice said the term ‘Border Trade’ means the trade of goods produced locally by people residing in vicinity of border area, and having a limited value. In 2007-08, Indian Government increased the Indian currency value of such trade from Rs. 25,000 to Rs. 100,000 per day per trader.

Border trade between India and China started a decade ago through Namgaya Shipkila and Gunji custom points. However, it increased to an extent only after trade from Nathu La resumed on July 6, 2006, almost 44 years after the ancient ‘Silk Route’ was closed down following a cross border conflict.

More than 90 percent of trade between India and China is carried out through sea route, while 80 percent of the trade through the land route, takes place through Nathu La.

Fibre2fashion News Desk - India

More Apparel/Garments News - India...