Home / Knowledge / News / Apparel/Garments / India's garment imports from Bangladesh up 56% post-GST
India's garment imports from Bangladesh up 56% post-GST
12
Dec '17
India
India has imported $87.4 million worth of readymade garments from Bangladesh during July-November 2017, registering a sharp rise of 56 per cent compared to $55.92 million during the same period last year, according to the data released by Export Promotion Bureau of Bangladesh. Indian apparel manufacturers will face stiff competition from Bangladesh.

Category-wise, Bangladesh’s knitted apparel exports to India stood at $30.1 million during the five-month period beginning July 1, 2017, indicating a 69 per cent growth over export of $17.9 million in the corresponding period of the previous year.

Likewise, Bangladesh supplied $57.3 million worth of woven apparel to India, showing a growth of 51 per cent over $38.1 million in the same period of 2016.

Commenting on the increase in imports, Confederation of Indian Textile Industry (CITI) chairman Sanjay K Jain said the exemption of the basic custom duty on imports of garments from Bangladesh is the main reason.

“In the pre-GST Scenario, import of garment from Bangladesh was attracting cost of Rs 77/pc (where MRP Rs 999/pc) and Rs 116/pc (where MRP is Rs 1500/pc) in the shape of CVD + education cess thereon. However, in the post- GST period, there is no cost for import of garments from Bangladesh,” Jain said in a CITI press release.

In the case of import of garment from other countries, the cost has been substantially reduced by Rs 77/pc and Rs 116/pc where MRP is Rs 999/pc and Rs 1500/pc respectively, Jain added.

Due to the reduction in cost of import, the Indian garment industry will face stiff competition from imported garments especially from Bangladesh where production cost is already less than India, he said.

Jain pointed out that there is an urgent need to impose safeguard measures such as Rules of Origin, Yarn Forward and Fabric Forward Rules on countries like Bangladesh and Sri Lanka that have free trade agreements (FTAs) with India to prevent cheaper fabrics produced from countries like China routed through these countries.

Garment manufacturers in India have to pay duty on imported fabrics, while Bangladesh can import fabric from China duty free and convert them into garments and sell to India duty free. This is putting Indian garment industry at a major disadvantage and it is feared that this figure will go up further in the coming days as more Indian brands shift sourcing from India to low cost duty free countries like Bangladesh and Sri Lanka, Jain said. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Riddell

Apparel/Garments | On 24th Feb 2020

Riddell sells part of apparel business to BSN Sports

Riddell, leader in football helmet technology, has sold certain...

Pic: Agfa

Textiles | On 24th Feb 2020

Agfa and TFL collaborating to develop Alussa

Agfa and TFL are collaborating to develop Alussa, an inkjet printing...

Pic: FESPA

Textiles | On 24th Feb 2020

FESPA to see latest in printing

FESPA Global Print Expo 2020 will see the international print...

Interviews View All

Frank Gossmann, Rotorcraft AG

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

Rajiv Sirohi, Shara

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Harsh Shah,

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Akshat Chaudhary,

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Aneeth Arora, Péro

Aneeth Arora
Péro

The Woolmark Company has partnered with handmade fashion label Péro and...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search